【Micro/Macro Seminar】How Inflation Shapes Trading Mechanisms: The Case of Auctions
2024/12/09
研討會日期 : 2024-12-09
時間 : 14:30
主講人 : Professor Richard Dutu
地點 : Conference Room B110
主持人 : Professor Han Yang
演講者簡介 : Professor Richard Dutu received his Ph.D. in Economics from University of Paris in 2004. He is a Professor at the University of Paris Dauphine. His research interests are Macroeconomics, Monetary Economics, and Crypto-Currencies.
演講摘要 : This presentation examines the impact of inflation on trading mechanisms, with a particular emphasis on auctions and how funding costs affect buyers' budgets and sellers' reserve price decisions. To do so, we construct a monetary economy where goods are sold through auctions, and buyers must pay an entry cost to participate. Buyers optimize their budgets by balancing the cost of holding additional money—the interest rate—against the increased likelihood of winning the auction, leading to an endogenous distribution of budgets. In a monopoly setting, the seller refrains from using a reserve price, regardless of buyers' funding costs. However, when sellers compete for buyers, a strictly positive reserve price emerges whenever the interest rate is above zero. This reserve price increases as funding costs rise, up to a certain threshold.
