In general, it is optimal for sellers to post an auction without a reserve price but with a fee, paid by all buyers who meet with the seller. However, the authors define a novel condition on meeting technologies, which they call invariance, and show that meeting fees are equal to zero if and only if this condition is satisfied. Finally, the authors discuss how invariance is related to other properties of meeting technologies identified in the literature.
Meeting Technologies and Optimal Trading Mechanisms in Competitive Search Markets
WP 14-15 - In a market in which sellers compete by posting mechanisms, the authors allow for a general meeting technology and show that its properties crucially affect the mechanism that sellers select in equilibrium.