Competing Auctions


Ellison G, Fudenberg D, Mobius M. Competing Auctions. Journal of European Economic Association [Internet]. 2004;2 (1) :30-66.
Article230 KB


This paper examines a simple model of competing auction sites to give some insights into the concentration of auction markets. In our model, there are B ex-ante identical buyers, each with unit demand, and S sellers, each with a single unit of the good to sell and a reservation value of zero. At the start of the model, buyers and sellers simultaneously choose between two possible locations. Buyers then learn their private values for the good, and a uniform-price auction is held at each location. This is a very stark model, but we believe that it provides some useful insights, and that it serves as a benchmark case for richer and more realistic models.

Publisher's Version

Last updated on 04/29/2018