NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Competitive Effects of Information Sharing

John Asker, Chaim Fershtman, Jihye Jeon, Ariel Pakes

NBER Working Paper No. 22836
Issued in November 2016
NBER Program(s):Industrial Organization

We investigate the impact of information sharing between rivals in a dynamic auction with asymmetric information. Firms bid in sequential auctions to obtain inputs. Their inventory of inputs, determined by the results of past auctions, are privately known state variables that determine bidding incentives. The model is analyzed numerically under different information sharing rules. The analysis uses the restricted experience based equilibrium concept of Fershtman and Pakes (2012) which we refine to mitigate multiplicity issues. We find that increased information about competitors’ states increases participation and inventories, as the firms are more able to avoid the intense competition in low inventory states. While average bids are lower, social welfare is unchanged and output is increased. Implications for the posture of antitrust regulation toward information sharing agreements are discussed.

download in pdf format
   (365 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22836

Users who downloaded this paper also downloaded* these:
Cohen, Hahn, Hall, Levitt, and Metcalfe w22627 Using Big Data to Estimate Consumer Surplus: The Case of Uber
Asker and Bar-Isaac w22771 Vertical Information Restraints: Pro- and Anti-Competitive Impacts of Minimum Advertised Price Restrictions
Doraszelski, Lewis, and Pakes w21996 Just Starting Out: Learning and Equilibrium in a New Market
Einav, Farronato, and Levin w21496 Peer-to-Peer Markets
Berry, Haile, Israel, and Katz w22811 Complementarity without Superadditivity
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us