IDEAS home Printed from https://ideas.repec.org/p/gue/guelph/2011-01..html
   My bibliography  Save this paper

Ranking Asymmetric Auctions using the Dispersive Order

Author

Listed:
  • Rene Kirkegaard

    () (Department of Economics,University of Guelph)

Abstract

The revenue ranking of asymmetric auctions with two heterogenous bidders is examined. The main theorem identifies a general environment in which the first-price auction is more profitable than the second-price auction. By using mechanism design techniques, the problem is simplified and several extensions are made possible. Roughly speaking, the first-price auction is more profitable when the strong bidder's distribution is flatter and more disperse than the weak bidder's distribution. These sufficient conditions turn out to have appealing geometric and economic interpretations. The theorem applies to certain environments with multi-dimensional types. It is also possible, for the first time, to extend the ranking to auctions with reserve prices and to auctions with more bidders. Implications for contests architecture and other auction formats are also pursued.

Suggested Citation

  • Rene Kirkegaard, 2011. "Ranking Asymmetric Auctions using the Dispersive Order," Working Papers 1101, University of Guelph, Department of Economics and Finance.
  • Handle: RePEc:gue:guelph:2011-01.
    as

    Download full text from publisher

    File URL: http://www.uoguelph.ca/economics/sites/uoguelph.ca.economics/files/2011-01.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Doni Nicola & Menicucci Domenico, 2013. "Revenue Comparison in Asymmetric Auctions with Discrete Valuations," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 13(1), pages 1-33, September.
    2. Shivangi Chandel & Shubhro Sarkar, 2014. "Revenue non-equivalence in multidimensional procurement auctions under asymmetry," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2014-008, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Hikmet Gunay & Xin Meng & Mark Nagelberg, 2012. "Reserve Price When Bidders are Asymmetric," ISER Discussion Paper 0849, Institute of Social and Economic Research, Osaka University.
    4. Kirkegaard, René, 2014. "Ranking asymmetric auctions: Filling the gap between a distributional shift and stretch," Games and Economic Behavior, Elsevier, vol. 85(C), pages 60-69.

    More about this item

    Keywords

    Asymmetric Auctions; Convex Transform Order; Dispersive Order; Multi-dimensional types; Revenue Ranking; Star order.;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gue:guelph:2011-01.. 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: (Stephen Kosempel). General contact details of provider: http://edirc.repec.org/data/degueca.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.