Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957205 | Journal of Economic Theory | 2013 | 13 Pages |
Abstract
In this paper we consider equilibrium behavior in a Dutch (descending price) auction when the bidders are uninformed of their valuations with probability q and can acquire information about their valuation with a positive cost during the auction. We assume that the information acquisition activity is covert. We characterize the equilibrium behavior in the setting where bidders are ex-ante symmetric and have independent private values. We show that when the number of bidders is large the Dutch auction produces more revenue than the first price auction.
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Authors
Paavo Miettinen,