Albrecht, J., Gautier, P., and Vroman, S. (2012). A note on 'competition among: Sellers who offer auctions instead of prices' by peters and severinov. Journal of Economic Theory, 147(1):389-392.
JournalJournal of Economic Theory
We consider a market in which sellers compete for buyers by advertising reserve prices for second-price auctions. Applying the limit equilibrium concept developed in Peters and Severinov (1997) , we show that the competitive matching equilibrium is characterized by a reserve price of zero. This corrects a result in Peters and Severinov (1997) . © 2011 Elsevier Inc.