On Favoritism in Auctions with Entry
We examine the problem of endogenous entry in a single-unit auction when the seller's welfare depends positively on the utility of a subset of potential bidders. We show that, unless the seller values those bidders?welfare more than her own ?private?utility, a nondiscriminatory auction is optimal.
|Date of creation:||May 2010|
|Date of revision:||May 2010|
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