IDEAS home Printed from https://ideas.repec.org/a/spr/reecde/v6y2001i3p461-480.html
   My bibliography  Save this article

First-price auctions when the ranking of valuations is common knowledge

Author

Listed:
  • Jacob Rubinstein

    (Department of Mathematics, Technion, Haifa, Israel)

  • Elmar Wolfstetter

    (Department of Economics, Humboldt-University, Berlin, Germany)

  • Michael Landsberger

    (Department of Economics, Haifa University, 21905 Haifa, Israel)

  • Shmuel Zamir

    (Hebrew University, Jerusalem, Israel)

Abstract

We consider a first-price auction when the ranking of bidders' private valuations is common knowledge among bidders. This new informational framework is motivated by several applications, from procurement to privatization. It induces a particular asymmetric auction model with affiliated private values that has several interesting properties but raises serious technical complications. We prove existence and uniqueness of equilibrium in pure strategies and show that the seller's reven generally higher in a first-price than in second-price and English auctions, in contrast to the ranking in the affiliated values model by Milgrom and Weber. This also implies that in first-price auctions, providing information concerning the ranking of valuations among bidders tends to increase the seller's expected revenue.

Suggested Citation

  • Jacob Rubinstein & Elmar Wolfstetter & Michael Landsberger & Shmuel Zamir, 2001. "First-price auctions when the ranking of valuations is common knowledge," Review of Economic Design, Springer;Society for Economic Design, vol. 6(3), pages 461-480.
    • Handle: RePEc:spr:reecde:v:6:y:2001:i:3:p:461-480
    Note: Received: 31 March 2000 / Accepted: 27 October 2000
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/10058/papers/1006003/10060461.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    Keywords

    Auctions; procurement;

    JEL classification:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:reecde:v:6:y:2001:i:3:p:461-480. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.