Revenue effects of ambiguity in multi-unit auctions

Daniel Bougt, Gagan Ghosh and Heng Liu

Journal of Economic Theory, 2025, vol. 225, issue C

Abstract: We study the effect of ambiguity on expected revenue in multi-unit auctions where bidders have independent private values, maxmin preferences, and single-unit demand. If the set of priors is suitably rich, we show that the discriminatory or ‘pay-as-bid’ auction has the highest expected revenue, followed by the sequential first-price auction and then the sequential second-price auction. The uniform price auction with the ‘highest losing bid’ pricing rule does the worst. Our results also extend to some open auction formats.

Keywords: Multi-unit auctions; Ambiguity; Revenue (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:225:y:2025:i:c:s0022053125000420

DOI: 10.1016/j.jet.2025.105996

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