Leaked bids in auctions shift power dynamics, boosting revenue for sellers.
The article explores how leaks in auctions affect bidders' behavior and outcomes. In first-price auctions, leaks don't change much, but in second-price auctions, they can lead to different results. Experimental results show that leaks benefit second movers but harm first movers and sellers. When leaks are likely, second-price auctions can bring in more money than first-price auctions.