Revenue Comparisons for Auctions when Bidders Have Arbitrary Types
AbstractThis paper develops a methodology for characterizing expected revenue from auctions when bidders' types come from an arbitrary distribution. In particular, types may be multidimensional, and there may be mass points in the distribution. One application extends existing revenue equivalence results. Another application shows that first-price auctions yield higher expected revenue than second-price auctions when bidders are risk averse and face financial constraints. This revenue ranking extends to risk-averse bidders with general forms of non-expected utility preferences.
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Date of creation: 19 Apr 2005
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Other versions of this item:
- Che, Yeon-Koo & Gale, Ian, 2006. "Revenue comparisons for auctions when bidders have arbitrary types," Theoretical Economics, Econometric Society, vol. 1(1), pages 95-118, March.
- Yeon-Koo Che & Ian Gale, 2005. "Revenue comparisons for auctions when bidders have arbitrary types," Discussion Papers 0506-03, Columbia University, Department of Economics.
- Che, Yeon-Koo & Gale, Ian, 2006. "Revenue Comparisons for Auctions When Bidders Have Arbitrary Types," MPRA Paper 6102, University Library of Munich, Germany.
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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- Che, Yeon-Koo & Gale, Ian, 1998. "Standard Auctions with Financially Constrained Bidders," Review of Economic Studies, Wiley Blackwell, vol. 65(1), pages 1-21, January.
- John Asker & Estelle Cantillon, 2004. "Equilibrium in Scoring Auctions," Working Papers 2004.148, Fondazione Eni Enrico Mattei.
- Monteiro, Paulo Klinger & Svaiter, Benar Fux, 2010.
"Optimal auction with a general distribution: Virtual valuation without densities,"
Journal of Mathematical Economics,
Elsevier, vol. 46(1), pages 21-31, January.
- Svaiter, Benar Fux & Monteiro, Paulo Klinger, 2008. "Optimal auction with a general distribution: virtual valuation without densities," Economics Working Papers (Ensaios Economicos da EPGE) 681, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
- Maciej H. Kotowski & Fei Li, 2012. "On the Continuous Equilibria of Affiliated-Value, All-Pay Auctions with Private Budget Constraints," PIER Working Paper Archive 12-019, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Malueg, David A. & Orzach, Ram, 2009. "Revenue comparison in common-value auctions: Two examples," Economics Letters, Elsevier, vol. 105(2), pages 177-180, November.
- Maciej H. Kotowski & Fei Li, 2012. "On the Continuous Equilibria of Affiliated-Value, All-Pay Auctions with Private Budget Constraints, Second Version," PIER Working Paper Archive 13-043, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 05 Aug 2013.
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