IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

First-price auctions when the ranking of valuations is common knowledge

Listed author(s):
  • Jacob Rubinstein


    (Department of Mathematics, Technion, Haifa, Israel)

  • Elmar Wolfstetter


    (Department of Economics, Humboldt-University, Berlin, Germany)

  • Michael Landsberger


    (Department of Economics, Haifa University, 21905 Haifa, Israel)

  • Shmuel Zamir

    (Hebrew University, Jerusalem, Israel)

We consider a first-price auction when the ranking of bidders' private valuations is common knowledge among bidders. This new informational framework is motivated by several applications, from procurement to privatization. It induces a particular asymmetric auction model with affiliated private values that has several interesting properties but raises serious technical complications. We prove existence and uniqueness of equilibrium in pure strategies and show that the seller's reven generally higher in a first-price than in second-price and English auctions, in contrast to the ranking in the affiliated values model by Milgrom and Weber. This also implies that in first-price auctions, providing information concerning the ranking of valuations among bidders tends to increase the seller's expected revenue.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to the full text of the articles in this series is restricted

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer & Society for Economic Design in its journal Review of Economic Design.

Volume (Year): 6 (2001)
Issue (Month): 3 ()
Pages: 461-480

in new window

Handle: RePEc:spr:reecde:v:6:y:2001:i:3:p:461-480
Note: Received: 31 March 2000 / Accepted: 27 October 2000
Contact details of provider: Web page:

Web page:

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:spr:reecde:v:6:y:2001:i:3:p:461-480. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)

or (Rebekah McClure)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.