Auctions with Private and Common Values Boost Seller Revenues and Efficiency
Auctions often involve items with both private and shared values. This study looks at how bidders behave in auctions with these mixed values. They found that when bidders have more uncertainty about the shared value, it lowers efficiency. When the seller gives more information, it reduces uncertainty, leading to higher efficiency and seller revenues. Having more bidders in the auction also increases efficiency and revenues.