Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
957255 | Journal of Economic Theory | 2011 | 12 Pages |
Abstract
We study a symmetric independent private values auction model where the revenue-maximizing seller faces a cost cncn of attracting n bidders to the auction. If the distribution of valuations possesses an increasing failure rate (IFR), the seller overinvests in attracting bidders compared to the social optimum. Conversely, if the distribution is DFR, the seller underinvests compared to the social optimum. If the distribution of valuations becomes more dispersed, both, a revenue- and a welfare-maximizing seller, attract more bidders.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Nora Szech,