Releasing information in private-value second-price auctions

Cristián Troncoso-Valverde

Economic Theory, 2018, vol. 65, issue 3, No 10, 817 pages

Abstract: Abstract I investigate the incentives to release information in markets in which auctioneers running second-price auctions compete for buyers by releasing information about their products before buyers decide in which auction they wish to participate. I provide sufficient conditions for the existence of an equilibrium in which both sellers release information even if there are only two buyers in the market. This result is in contrast to previous findings reported in the literature showing that the optimal decision for a monopolist facing a fixed set of two buyers is to not release any information. Thus, the results of the paper suggest that competition between auctioneers strengthens the incentives to release information in markets in which selling mechanisms are second-price auctions.

Keywords: Second-price auctions; Competing auctions; Information structures; Private provision of information (search for similar items in EconPapers)
JEL-codes: C72 D44 D80 D82 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s00199-017-1039-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Information Release in Second–Price Auctions (2015)
Working Paper: Information Provision in Competing Auctions (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:65:y:2018:i:3:d:10.1007_s00199-017-1039-y

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

DOI: 10.1007/s00199-017-1039-y

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().