When Are Auctions Best?

Jeremy I. Bulow and Paul Klemperer
Additional contact information
Jeremy I. Bulow: Stanford U

Research Papers from Stanford University, Graduate School of Business

Abstract: We compare the two most common bidding processes for selling a company or other asset when participation is costly to buyers. In an auction all entry decisions are made prior to any bidding. In a sequential bidding process earlier entrants can make bids before later entrants choose whether to compete. The sequential process is more efficient because entrants base their decisions on superior information. But pre-emptive bids transfer surplus from the seller to buyers. Because the auction is more conducive to entry in several ways it usually generates higher expected revenue.

Date: 2007-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://gsbapps.stanford.edu/researchpapers/library/RP1973.pdf

Related works:
Working Paper: When are Auctions Best? (2007)
Working Paper: When are Auctions Best? (2007)
Working Paper: When are Auctions Best? (2007)
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:ecl:stabus:1973

Access Statistics for this paper

More papers in Research Papers from Stanford University, Graduate School of Business Contact information at EDIRC.
Bibliographic data for series maintained by ().