Asymmetric Multiple-Object First-Price Auctions

Paul Pezanis-Christou

No 2013-07, School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: The paper reports on the effects of one-sided imperfect information on bidding behaviour in simultaneous and sequential first-price auctions of non-identical objects when bidders have multi-unit demands. The analysis provides the following four main results. First, when different objects are to be sold in sequence, the seller maximises her expected revenues by selling the most valuable object first. Second, the more the objects are different and the more the sequential format favours the informed bidder. Third, by switching the order of sales, the seller may want to change her initial preference for a simultaneous format (in which bidders submit object-specific bids) to one for a sequential format. Fourth, sequential auctions are mostly preferred by the seller when the objects are likely to be of low value and the precision of the informed bidder's signal is low.

Keywords: multiple-object auctions; sequential and simultaneous procedures; first-price auctions; asymmetric bidders; multi-unit demands; common value; price trends; order of sales. (search for similar items in EconPapers)
JEL-codes: C7 D4 D44 D8 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013-05
New Economics Papers: this item is included in nep-cta, nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://media.adelaide.edu.au/economics/papers/doc/wp2013-07.pdf First version, 2013 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2013-07

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