Bidder-Optimal Information Structures in Auctions

Dirk Bergemann, Tibor Heumann and Stephen Morris
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Tibor Heumann: Pontificia Universidad Catolica de Chile

No 2375, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We characterize the bidders' surplus maximizing information structure in an optimal auction for a single unit good and related extensions to multi-unit and multi-good problems. The bidders seeks to find a balance between participation (and the avoidance of exclusion) and efficiency. The information structure that maximizes the bidders surplus is given by a generalized Pareto distribution at the center of demand distribution, and displays complete information disclosure at either end of the Pareto distribution.

Pages: 72 pages
Date: 2023-12-22
New Economics Papers: this item is included in nep-com, nep-gth and nep-mic
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Working Paper: Bidder-Optimal Information Structures in Auctions (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:cwl:cwldpp:2375

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