Optimal Auctions with Simultaneous and Costly Participation
We study the optimal auction problem with participation costs in the symmetric independent private values setting, where bidders know their valuations when they make independent participation decisions. After characterizing the optimal auction in terms of participation cutoffs, we provide an example where it is asymmetric. We then investigate when the optimal auction will be symmetric/asymmetric and the nature of possible asymmetries. We also show that, under some conditions, the seller obtains her maximal profit in an (asymmetric) equilibrium of an anonymous second price auction. In general, the seller can also use non-anonymous auctions that resemble the ones that are actually observed in practice.
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Volume (Year): 9 (2009)
Issue (Month): 1 (July)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Olivier Compte & Philippe Jehiel, 2007.
"Auctions and information acquisition: sealed bid or dynamic formats?,"
RAND Journal of Economics,
RAND Corporation, vol. 38(2), pages 355-372, 06.
- Olivier Compte & Philippe Jehiel, 2005. "Auctions and Information acquisition: Sealed-bid or Dynamic Formats?," Levine's Bibliography 784828000000000495, UCLA Department of Economics.
- Olivier Compte & Philippe Jehiel, 2007. "Auctions and Informaton Acquisition: Sealed-bid or Dynamic Formats?," Post-Print halshs-00754227, HAL.
- Campbell, Colin M., 1998. "Coordination in Auctions with Entry," Journal of Economic Theory, Elsevier, vol. 82(2), pages 425-450, October. Full references (including those not matched with items on IDEAS)