The present paper analyzes optimal bidding in discriminatory and competitive multi{unit auctions when bidders have price elastic demand functions. Distinctions are drawn between bidders who are either rms or consumers, and bidders who are either risk neutral or risk averse. Assuming price{ taking bidders who face a given probability distribution of the stop{out price, closed{form solutions of o...

Experiments permit rigorous testing of auction theory. In single-unit private value auctions the Revenue Equivalence Theorem fails, but the comparative static predictions of Nash bidding theory hold, indicating that bidders are responsive to the primary economic forces at work in the theory. In single-unit common value auctions inexperienced bidders invariably suffer from a “winner’s curse,” an...

The regulated price policy may be implemented for some products. It is generally implemented for some products such as electricity, natural gas, water and so on that are supplied as monopolist. The regulated price shock on these products may lead to an adjustment in the endowments of primary factors. The aim of this paper is to investigate the effects of a regulated price shock on price indices...

This paper examines the empirical validity of a model of homogeneous input demand under price uncertainty in which firms trade off expected input cost against its variability (risk) in selecting the optimal input supplier mix. Using recent work in time-series econometrics, this model is applied to the Japanese steam-coal import market, where five suppliers compete: China, the Soviet Union, Sout...

abstract marketing element’s contrastive behaviors toward price risk had considerable effect on marketing margin in a way that transferring increase in price to final consumer, reduces purchasing power and so consumption amounts of consumers. present study evaluated effective parameters on marketing margin in 2 level of ranch-processing and processing- retail of beef and lamb with consideration...

Supply and demand functions are typically estimated using uniform prices and quantifies across products, but where .products are heterogeneous, it is important tO Consider quality differences explicitly. This paper demonstrates a new approach to doing this by employing hedonic coefficients to estimate price elasticities for differentiated products in the market for personal computers. Differenc...