Asymmetric Multiple-Object First-Price Auctions
AbstractThe paper reports on the effects of one-sided imperfect information on bidding behaviour in simultaneous and sequential first-price auctions of non-identical objects when bidders have multi-unit demands. The analysis provides the following four main results. First, when different objects are to be sold in sequence, the seller maximises her expected revenues by selling the most valuable object first. Second, the more the objects are different and the more the sequential format favours the informed bidder. Third, by switching the order of sales, the seller may want to change her initial preference for a simultaneous format (in which bidders submit object-specific bids) to one for a sequential format. Fourth, sequential auctions are mostly preferred by the seller when the objects are likely to be of low value and the precision of the informed bidder's signal is low.
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Bibliographic InfoPaper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2013-07.
Length: 25 pages
Date of creation: May 2013
Date of revision:
multiple-object auctions; sequential and simultaneous procedures; first-price auctions; asymmetric bidders; multi-unit demands; common value; price trends; order of sales.;
Find related papers by JEL classification:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- D4 - Microeconomics - - Market Structure and Pricing
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-16 (All new papers)
- NEP-CTA-2013-06-16 (Contract Theory & Applications)
- NEP-GTH-2013-06-16 (Game Theory)
- NEP-MIC-2013-06-16 (Microeconomics)
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