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Disclosure or not, When There are Three Bidders?

Author

Listed:
  • Daniel Z. Li

    (Durham University Business School)

Abstract

This paper provides a more general sufficient condition than Hummel and McAfee (2015) for optimal information disclosure in auctions when there are three bidders. We show that the optimal disclosure policy is related to the skewness of the distribution of bidders' valuations. Specifically, if the distribution is skewed to the left (right), it is optimal for the seller to reveal full (no) information to the bidders. And if it is symmetric, then there's no difference between revealing information or not.

Suggested Citation

  • Daniel Z. Li, 2016. "Disclosure or not, When There are Three Bidders?," Economics Bulletin, AccessEcon, vol. 36(1), pages 349-354.
    • Handle: RePEc:ebl:ecbull:eb-15-00748
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Auction; Information Disclosure; Preference Differentiation; Skewness of Distribution;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising

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