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Competitive Externalities in Dynamic Monopolies with Stochastic Demand
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Walter Beckert
Published/Copyright:
December 4, 2006
This paper analyzes equilibria in sequential take-it-or-leave-it sales when demand is stochastic. It is shown that equilibria in this sales mechanism, unlike in sequential auctions, trade-off allocative efficiency and competing buyers' opportunities to acquire an item to be sold, permitting prices and expected revenue above those of one-shot offers. Hence Coase-type conjectures are invalid in this setting.
Published Online: 2006-12-4
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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