Publication Type:
other
Publication Year:
Publication Bibliography:
Revenue-Superior Variants of the Second-Price Auction
Economic Theory , 59, 2, 245-275, 2015
Abstract: With two bidders, one strong and one weak, the introduction of at least some degree of anonymous "pay-your-bid" in the payment rule of the second-price auction behooves any risk-neutral seller who, while possibly efficiency minded, cares about revenues. This can be achieved by adding to the winner's payment a uniform proportion of his own bid, as in Guth and van Damme's auction, or by having bidders receive a uniform proportion of the losing bid, as in Goeree and Offerman's Amsterdam auction, or even by selling uniform toeholds to the bidders prior to the auction. We demonstrate one-to-one relations between the equilibria of these auctions and of first-price auctions. By assuming a power relation between the bidders' value cumulative or decumulative functions, we obtain explicit expressions for the first-order effects of the pay-your-bid rule.
[go to paper]
Publication Reference Link:
Break down of publication data into fields
Publication Title:
Author Name:
Co-Author Name(s):
c
d
Conference Title:
Report Title:
Title of Paper:
Chapter Title:
Title of Journal:
Title of Book:
Conference Name:
City and Province/State/Country:
Editor's Name (if different from Author's Name):
Volume and Issue:
ISBN/Catalogue No:
Publisher:
City:
Page Number(s):
Publication Type:
Publication Category: