On Favoritism in Auctions with Entry
AbstractWe examine the problem of endogenous entry in a single-unit auction when the seller's welfare depends positively on the utility of a subset of potential bidders. We show that, unless the seller values those bidders?welfare more than her own ?private?utility, a nondiscriminatory auction is optimal.
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Bibliographic InfoPaper provided by Universidad de San Andres, Departamento de Economia in its series Working Papers with number 103.
Length: 10 pages
Date of creation: May 2010
Date of revision: May 2010
auctions; favoritism; free entry; endogenous number of bidders;
Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-04 (All new papers)
- NEP-CTA-2010-06-04 (Contract Theory & Applications)
- NEP-GTH-2010-06-04 (Game Theory)
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