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Procurement Vs. Sale-right Auctions In Monopoly Industries

Posted on:2005-06-16Degree:MasterType:Thesis
Country:ChinaCandidate:Z HuangFull Text:PDF
GTID:2156360125456008Subject:Finance
Abstract/Summary:PDF Full Text Request
This paper concentrates on how a monopoly uses auction-like mechanisms to reveal the suppliers' incomplete information in the pre-sale stage. The profit allocations and efficiencies of two different classes of mechanisms, corresponding to different business modes, are compared. We find that unit price mechanisms bring no less expected profit to the monopoly in both optimal mechanisms and in standard auctions. Our main conclusion justifies the monopoly's preference to the procurement business mode upon sale-right auction mode, while efficiency may be scarified in this mode.
Keywords/Search Tags:Monopoly, Auction, Efficiency, Asymmetric information, Bidding
PDF Full Text Request
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