The public release of information in first-price sealed-bid auctions
AbstractWe determine the conditions under which the seller in a first-price sealed-bid auction has an incentive to reveal his private information about the mean of bidders’ valuations in order to increase his expected revenue. With risk-neutral bidders, we show that the seller’s expected revenue is higher when information is revealed. However, when bidders are risk-averse, this result does not necessarily hold; it depends on the bidders’ risk-aversion level and on the number of bidders. Copyright Springer-Verlag 2012
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Bibliographic InfoArticle provided by Springer in its journal Review of Economic Design.
Volume (Year): 16 (2012)
Issue (Month): 4 (December)
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Web page: http://link.springer.de/link/service/journals/10058/index.htm
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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