Abstract:
We have analyzed uniform price and price discrimination multiple auction separately with variable supply of manufacturers when multiple retailers have non-unit demand to obtain the bidding strategy of the retailers, the pricing strategy of manufacturers and its related properties. The comparison result between the two kinds of auction indicates that: For the uniform price auction, the quantities that retailers submit is above its real demand at the lower price, while below their true demand quantity at the higher price. For the discrimination price auction, the quantities that retailers submit equals their real demand at the lower price, while below their true demand quantity at the higher price. Contrast to price discrimination auction, the more retailers participate in the auction, the less distortion of quantity submitted by retailers. From mechanism design viewpoint, manufacturers tend to adopt uniform price auction for its wholesale products.