Repositori institucional URV
| URV's Author/s: | Manzano Tovar, Carolina |
| Author, as appears in the article.: | Manzano C; Vives X |
| Author's mail: | carolina.manzano@urv.cat carolina.manzano@urv.cat |
| Author identifier: | 0000-0001-7160-0562 0000-0001-7160-0562 |
| Journal publication year: | 2021 |
| Publication Type: | Journal Publications |
| APA: | Manzano C; Vives X (2021). Market power and welfare in asymmetric divisible good auctions. Theoretical Economics, 16(3), 1095-1137. DOI: 10.3982/TE3675 |
| Papper original source: | Theoretical Economics. 16 (3): 1095-1137 |
| Abstract: | We analyze a divisible good uniform-price auction that features two groups, each with a finite number of identical bidders, who compete in demand schedules. In the linear-quadratic-normal framework, this paper presents conditions under which the unique equilibrium in linear demands exists and derives novel comparative statics results that highlight the interaction between payoff and information parameters with asymmetric groups. We find that the strategic complementarity in the slopes of traders' demands is reinforced by inference effects from prices, and we display the role of payoff and information asymmetries in explaining deadweight losses. Furthermore, price impact and the deadweight loss need not move together, and market integration may reduce welfare. The results are consistent with the available empirical evidence. Copyright © 2021 The Authors. |
| Article's DOI: | 10.3982/TE3675 |
| Link to the original source: | https://econtheory.org/ojs/index.php/te/article/view/3675 |
| Papper version: | info:eu-repo/semantics/publishedVersion |
| licence for use: | https://creativecommons.org/licenses/by/3.0/es/ |
| Department: | Economia |
| Licence document URL: | https://repositori.urv.cat/ca/proteccio-de-dades/ |
| Thematic Areas: | General economics,econometrics and finance Economics, econometrics and finance (miscellaneous) Economics, econometrics and finance (all) Economics Economia Ciencias sociales Business and management |
| Keywords: | Treasury auctions Private information Market integration Liquidity auctions G14 Electricity auctions E58 Demand/supply schedule competition D82 D44 |
| Entity: | Universitat Rovira i Virgili |
| Record's date: | 2024-07-27 |
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