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dc.contributor.author McAdams, D
dc.contributor.author Schwarz, M
dc.date.accessioned 2010-03-09T15:22:56Z
dc.date.issued 2007-03-01
dc.identifier.citation American Economic Review, 2007, 97 (1), pp. 260 - 276
dc.identifier.issn 0002-8282
dc.identifier.uri http://hdl.handle.net/10161/1729
dc.description.abstract We consider a seller who faces several buyers and lacks access to an institution to credibly close a sale. If buyers anticipate that the seller may negotiate further, they will prefer to wait before making their best and final offers. This in turn induces the seller to bargain at length with buyers, even if doing so is costly. When the seller's cost of soliciting another round of offers is either very large or very small, the seller credibly commits to an auction and experiences negligible bargaining costs. Otherwise, there may be several rounds of increasing offers and significant seller losses. In these situations, an intermediary with a sufficiently valuable reputation and/or weak marginal incentives regarding price can create value by credibly committing to help sell the object without delay.
dc.format.extent 260 - 276
dc.format.mimetype application/pdf
dc.language.iso en_US
dc.relation.ispartof American Economic Review
dc.relation.isversionof 10.1257/aer.97.1.260
dc.title Credible sales mechanisms and intermediaries
dc.type Journal Article
dc.department Economics
pubs.issue 1
pubs.organisational-group /Duke
pubs.organisational-group /Duke/Fuqua School of Business
pubs.organisational-group /Duke/Institutes and Provost's Academic Units
pubs.organisational-group /Duke/Institutes and Provost's Academic Units/Initiatives
pubs.organisational-group /Duke/Institutes and Provost's Academic Units/Initiatives/Duke Science & Society
pubs.organisational-group /Duke/Trinity College of Arts & Sciences
pubs.organisational-group /Duke/Trinity College of Arts & Sciences/Economics
pubs.publication-status Published
pubs.volume 97

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