Synergies and Price Trends in Sequential Auctions

@inproceedings{Menezes1999SynergiesAP,
  title={Synergies and Price Trends in Sequential Auctions},
  author={Flavio M. Menezes and Paulo K. Monteiro},
  year={1999}
}
In this paper we consider sequential auctions where an individual’s value for a bundle of objects is either greater than the sum of the values for the objects separately (positive synergy) or less than the sum (negative synergy). We show that the existence of positive synergies implies declining expected prices. When synergies are negative, expected prices are increasing. There are several corollaries. First, the seller is indi¤erent between selling the objects simultaneously as a bundle or… CONTINUE READING
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