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| Luke M. Froeb, Vladimir Mares, Steven Tschantz and Charles Taragin |
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| ''The simple algebra of surplus in private values open auctions: A nested logit merger model'' |
| ( 2018, Vol. 38 No.4 ) |
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| 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. |
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| Keywords: Surplus, Private-Values Auctions, Merger, Antitrust, Horizontal
Anticompetitive Practices |
JEL: D4 - Market Structure and Pricing: General
L4 - Antitrust Issues and Policies: General |
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| Manuscript Received : May 18 2018 | | Manuscript Accepted : Dec 02 2018 |
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