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The public release of information in first-price sealed-bid auctions

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Listed:
  • François Maréchal
  • Pierre-Henri Morand

Abstract

We determine the conditions under which the seller in a first-price sealed-bid auction has an incentive to reveal his private information about the mean of bidders’ valuations in order to increase his expected revenue. With risk-neutral bidders, we show that the seller’s expected revenue is higher when information is revealed. However, when bidders are risk-averse, this result does not necessarily hold; it depends on the bidders’ risk-aversion level and on the number of bidders. Copyright Springer-Verlag 2012

Suggested Citation

  • François Maréchal & Pierre-Henri Morand, 2012. "The public release of information in first-price sealed-bid auctions," Review of Economic Design, Springer;Society for Economic Design, vol. 16(4), pages 323-330, December.
    • Handle: RePEc:spr:reecde:v:16:y:2012:i:4:p:323-330
    DOI: 10.1007/s10058-012-0115-9
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    References listed on IDEAS

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    More about this item

    Keywords

    Auctions; Information; Risk-aversion; D44; D81;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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