Competitive Bidding Model with Reserve Price

최저입찰가와 참가비가 있는 경쟁입찰모형

The competitive bidding model with the reserve price has been studied by Riley and Samuelson. We extend their studies to the competitive model with the reserve price and the entry fee. First we present the bidder's optimal strategy, the winner's expected profit, the auctioner's expected revenue in the first-price sealed bidding model, and next those in the second-price sealed bidding model.