Decision Sciences
4 years ago

Investing in ideas before auctions leads to double inefficiency, study finds.

2 views
RePEc: Research Papers in Economics
Auctions when bidders prepare by investing in ideas
Thomas D. Jeitschko, Elmar Wolfstetter

Paper Summary

The article discusses auctions where bidders invest in ideas before bidding. Standard auctions are efficient, but reserve price requirements create inefficiencies. Optimal auctions differ from static optimum, and information spillovers impact outcomes.

Related papers

Decision Sciences
8 years ago

Reputation Matters: How Seller Honesty Impacts Auction Efficiency and Revenue

Mechanism Design
Economic Analysis
Network Formation
2 views
Decision Sciences
4 years ago

First-Price Auctions Prevent Bankruptcy, Outperform Second-Price Auctions

Mechanism Design
Economic Analysis
Economic Behavior
2 views
Decision Sciences
4 years ago

Dutch auctions generate more revenue than traditional auctions with covert information acquisition.

Mechanism Design
Economic Analysis
Economic Behavior
1 view