Auctions with endogenous valuations: the snowball effect revisited

This paper looks at the determination of ownership of capacity when there are two ex-ante symmetric agents bidding for many units of capacity which are sold sequentially. It is shown that convexity of payoffs in the final stage of the game is sufficient to ensure monopolization of capacity, but that increasing returns to scale are not sufficient to ensure monopolization.

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Year of publication:	1999-02-17
Authors:	Krishna, Kala
Published in:	Economic Theory. - Springer. - Vol. 13.1999, 2, p. 377-391
Publisher:	Springer
Subject:	Sequential auctions \| Endogenous valuations \| Evolution of market structure

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Extent:	application/pdf
Type of publication:	Article
Notes:	Received: March 14, 1997; revised version: December 1, 1997
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005371209