All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Luke M. Froeb, Vladimir Mares, Steven Tschantz and Charles Taragin
''The simple algebra of surplus in private values open auctions: A nested logit merger model''
( 2018, Vol. 38 No.4 )
In a private values, open auction, we show that bidder surplus can be expressed as a simple difference between unconditional moments of order statistics. The strength of the result is its simplicity and generality, as we dispense with the typical assumptions of independence or symmetry. We show how to use the expression to derive closed-form expressions for the effects of a merger among bidders for any joint value distribution.
Keywords: Surplus, Private-Values Auctions, Merger, Antitrust, Horizontal Anticompetitive Practices
JEL: D4 - Market Structure and Pricing: General
L4 - Antitrust Issues and Policies: General
Manuscript Received : May 18 2018 Manuscript Accepted : Dec 02 2018

  This abstract has been downloaded 989 times                The Full PDF of this paper has been downloaded 155972 times