Sequential auctions with continuation costs

Abstract

In actual sequential auctions, 1) bidders typically incur a cost in continuing from one sale to the next, and 2) bidders decide whether or not to continue. To investigate the question 'when do bidders drop out,' we define a sequential auction model with continuation costs and an endogenously determined number of bidders at each sale, and we characterize the equilibria in this modele Simple examples illustrate the effect of several possible changes to this modele