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Competitive Bidding and Proprietary Information

Author

Listed:
  • Richard Engelbrecht-Wiggans
  • Robert J. Webber

    (Northwestern University)

Abstract

The auction of an object is considered, for the case in which one bidder is better-informed than the others concerning the actual value of the object. An equilibrium point solution of the competitive bidding game is determined; at this equilibrium, the expected revenue of the less-well-informed bidders is zero. The case of an object which can take only values from a discrete set is dealt with as the limit of auctions of continuously-valued objects.

Suggested Citation

  • Richard Engelbrecht-Wiggans & Robert J. Webber, 1979. "Competitive Bidding and Proprietary Information," Cowles Foundation Discussion Papers 531, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:531
    Note: CFP 576b.
    as

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    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d05/d0531.pdf
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    References listed on IDEAS

    as
    1. Hughart, David, 1975. "Informational Asymmetry, Bidding Strategies, and the Marketing of Offshore Petroleum Leases," Journal of Political Economy, University of Chicago Press, vol. 83(5), pages 969-985, October.
    2. Robert B. Wilson, 1967. "Competitive Bidding with Asymmetric Information," Management Science, INFORMS, vol. 13(11), pages 816-820, July.
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