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 Torcuato Di Tella in its series Department of Economics Working Papers with number 2010-072.
Length: 09 pages
Date of creation: Jul 2010
Date of revision:
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Web page: http://www.utdt.edu/ver_contenido.php?id_contenido=439&id_item_menu=568
More information through EDIRC
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-2010-07-24 (All new papers)
- NEP-CTA-2010-07-24 (Contract Theory & Applications)
- NEP-GTH-2010-07-24 (Game Theory)
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