Bidding among Friends and Enemies with Symmetric Information
We consider an auction setting, in a symmetric information framework, in which bidders, even if they fail to obtain the good, care about the price paid by the winner. We prove that the outcome of the first- price auction is not aff ected by identity independent price externalities while the outcome of the second-price auction is. In contrast, identity dependent price externalities a ect the outcome of both auction formats. In any case, the second-price auction exacerbates the eff ects of price externalities.
|Date of creation:||2010|
|Publication status:||Published in Journal of Institutional and Theoretical Economics, Mohr Siebeck, 2010, 166 (2), pp.365-385|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00701295|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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