On favoritism in auctions with entry

Leandro Arozamena and Federico Weinschelbaum

Department of Economics Working Papers from Universidad Torcuato Di Tella

Abstract: We examine the problem of endogenous entry in a single-unit auction when the seller's welfare depends positively on the utility of a subset of potential bidders. We show that, unless the seller values those bidders' welfare more than her own "private" utility, a nondiscriminatory auction is optimal.

Keywords: auctions; favoritism; free entry; endogenous number of bidders. (search for similar items in EconPapers)
JEL-codes: C72 D44 (search for similar items in EconPapers)
Pages: 09 pages
Date: 2010-07
New Economics Papers: this item is included in nep-cta and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://www.utdt.edu/download.php?fname=_127904826353184600.pdf (application/pdf)

Related works:
Journal Article: On favoritism in auctions with entry (2011)
Working Paper: On Favoritism in Auctions with Entry (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:udt:wpecon:2010-072

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