Revenue comparisons for auctions when bidders have arbitrary types

, () and , ()
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,: Columbia University and University of Wisconsin--Madison
,: Georgetown University
Authors registered in the RePEc Author Service: Yeon-Koo Che and Ian Gale

Theoretical Economics, 2006, vol. 1, issue 1, 95-118

Abstract: This paper develops a methodology for characterizing expected revenue from auctions when bidders' types come from an arbitrary distribution. In particular, types may be multidimensional, and there may be mass points in the distribution. One application extends existing revenue equivalence results. Another application shows that first-price auctions yield higher expected revenue than second-price auctions when bidders are risk averse and face financial constraints. This revenue ranking extends to risk-averse bidders with general forms of non-expected utility preferences.

Keywords: Auctions; multidimensional types and atoms; risk aversion; Gateaux differentiable preferences (search for similar items in EconPapers)
JEL-codes: C70 D44 (search for similar items in EconPapers)
Date: 2006-03-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

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Related works:
Working Paper: Revenue Comparisons for Auctions When Bidders Have Arbitrary Types (2006)
Working Paper: Revenue Comparisons for Auctions when Bidders Have Arbitrary Types (2005)
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