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Information concentration in common value environments

Listed author(s):
  • Vlad Mares

    ()

  • Mikhael Shor

    ()

Registered author(s):

    We consider how information concentration affects a seller’s revenue in common value auctions. The common value is a function of $$n$$ random variables partitioned among $$m \le n$$ bidders. For each partition, the seller devises an optimal mechanism. We show that whenever the value function allows scalar sufficient statistics for each player’s signals, the mechanism design problem is well-defined. Additionally, whenever a common regularity condition is satisfied, a coarser partition always reduces revenues. In particular, any merger or collusion among bidders reduces revenue. Copyright Springer-Verlag Berlin Heidelberg 2013

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    File URL: http://hdl.handle.net/10.1007/s10058-013-0143-0
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    Article provided by Springer & Society for Economic Design in its journal Review of Economic Design.

    Volume (Year): 17 (2013)
    Issue (Month): 3 (September)
    Pages: 183-203

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    Handle: RePEc:spr:reecde:v:17:y:2013:i:3:p:183-203
    DOI: 10.1007/s10058-013-0143-0
    Contact details of provider: Web page: http://www.springer.com

    Web page: https://sites.google.com/site/societyforeconomicdesign/

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