Optimal auction design levels the playing field for resale opportunities.
The article explores how to maximize revenue in auctions when bidders are middlemen looking to resell the item. Bidders have different information about resale opportunities, but the best strategy is to set a fixed price for all bidders. If the seller can keep the item, all bidders have equal chances of getting it, regardless of their information. However, if the item must be sold, bidders with lower signals are favored. This model helps understand how fixed prices can work in auctions with multiple bidders.