Bidders' Uncertainty Boosts Revenue in Government Auctions, Favors First-Price Over English.
Bidders in government auctions are unsure about how many competitors they have. This uncertainty, combined with their aversion to risk, affects the revenue generated in different types of auctions. First-price auctions bring in more money than English auctions because bidders are more willing to bid higher when they are uncertain about the number of rivals. This is why sellers prefer first-price auctions over English auctions.