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Revenue comparison of discrete private-value auctions via weak dominance

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  • Makoto Shimoji

    () (University of York)

Abstract

Abstract We employ weak dominance to analyze both first-price and second-price auctions under the discrete private-value setting. We provide a condition under which the expected revenue from second-price auction is higher than that of first-price auction. We also provide implications for large auctions, including the “virtual” revenue equivalence.

Suggested Citation

  • Makoto Shimoji, 2017. "Revenue comparison of discrete private-value auctions via weak dominance," Review of Economic Design, Springer;Society for Economic Design, vol. 21(4), pages 231-252, December.
  • Handle: RePEc:spr:reecde:v:21:y:2017:i:4:d:10.1007_s10058-017-0202-z
    DOI: 10.1007/s10058-017-0202-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Discrete private-value auctions; Revenue comparison; Weak dominance;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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