Auctions with Private Entry Costs

Aner Sela and Todd Kaplan

No 4080, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study auctions where bidders have private information about their entry costs and the seller does not benefit from these entry costs. We consider a symmetric environment where all bidders have the same value for the object being sold, and also an asymmetric environment where bidders may have different valuations for the object. In these environments, the seller?s pay-off as well as the social surplus may either increase or decrease in the number of bidders though not necessarily in the same direction. The auction designs that maximize the social surplus or the seller?s pay-off are analysed.

Keywords: Symmetric auctions; Asymmetric auctions; Entry costs (search for similar items in EconPapers)
JEL-codes: D44 O31 O32 (search for similar items in EconPapers)
Date: 2003-10
New Economics Papers: this item is included in nep-com, nep-ind and nep-mic
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Citations: View citations in EconPapers (17)

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