Auctions Just Got More Profitable: New Staged Bidding Boosts Seller Earnings
The article explores a new type of auction called auction by stages, which can potentially increase returns compared to traditional one-stage auctions. By using a model that considers private values of bidders, the study shows that sellers can benefit from holding more information about bidders to set better reserve prices. This type of auction can be used in various fields where sealed-bid first price auctions are common.