Reserve price signaling in first-price auctions with an uncertain number of bidders

Toshihiro Tsuchihashi ()
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Toshihiro Tsuchihashi: Daito Bunka University

International Journal of Game Theory, 2020, vol. 49, issue 4, No 8, 1103 pages

Abstract: Abstract We study first-price auctions in which the number of bidders is the seller’s private information, and investigate the use of a reserve price to signal this private information. We use the D1 criterion to refine the set of equilibria and characterize a symmetric separating equilibrium outcome, where the reserve price increases with the number of bidders. The key driving force is a certain form of single-crossing property. With more bidders, the seller can afford a high reserve price that discourages competition in the auction, for the winning bid is more likely to be higher.

Keywords: First-price auctions; Uncertain number of bidders; Signaling games; Reserve price signaling (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s00182-020-00731-3

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