Slight Advantages in Auctions Can Drastically Reduce Revenue and Fairness
Almost common-value auctions are auctions where one bidder has an advantage over others. In second-price auctions with two bidders, even a small advantage can lead to the advantaged bidder winning all the time, resulting in lower auction revenue. Adding more bidders doesn't change this outcome much. This also applies to English auctions. So, even a slight advantage can greatly impact auction results.