Tournament Auctions

Luca Anderlini and GaOn Kim

Papers from arXiv.org

Abstract: We examine ``tournament'' second-price auctions in which $N$ bidders compete for the right to participate in a second stage and contend against bidder $N+1$. When the first $N$ bidders are committed so that their bids cannot be changed in the second stage, the analysis yields some unexpected results. The first $N$ bidders consistently bid above their values in equilibrium. When bidder $N+1$ is sufficiently stronger than the first $N$, overbidding leads to an increase in expected revenue in comparison to the standard second-price auction when $N$ is large.

Date: 2024-03
New Economics Papers: this item is included in nep-des, nep-gth and nep-mic
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Citations: View citations in EconPapers (1)

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http://arxiv.org/pdf/2403.08102 Latest version (application/pdf)

Related works:
Working Paper: Tournament Auctions (2024)
Working Paper: Tournament Auctions (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2403.08102

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