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Asymmetry and revenue in first-price auctions

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  • Cheng, Harrison

Abstract

We show by an example that in first-price IPV auctions, asymmetry in bidders' valuations need not reduce the revenue compared to a benchmark symmetric model with the same amount of social surplus. Asymmetry need not reduce competition in first-price auctions.

Suggested Citation

  • Cheng, Harrison, 2011. "Asymmetry and revenue in first-price auctions," Economics Letters, Elsevier, vol. 111(1), pages 78-80, April.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:78-80
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    References listed on IDEAS

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    Cited by:

    1. Lorentziadis, Panos L., 2016. "Optimal bidding in auctions from a game theory perspective," European Journal of Operational Research, Elsevier, vol. 248(2), pages 347-371.
    2. Jihui Chen & Maochao Xu, 2015. "Asymmetry and revenue in second-price auctions: a majorization approach," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(3), pages 625-640, July.
    3. Arieh Gavious & Yizhaq Minchuk, 2014. "Ranking asymmetric auctions," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(2), pages 369-393, May.

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