Sequential auctions lead to higher revenue in first auction, lower in second.
The article explores how bidders behave in sequential auctions where they have to decide whether to participate in each auction, considering the cost involved. The researchers found that when bidders have a higher valuation for the second object, they are more likely to aggressively enter the first auction to signal their strong interest in the second object. This signaling strategy can lead to higher revenue in the first auction but lower revenue in the second auction compared to simultaneous auctions.