Should Auctioneers Supply Early Information for Prospective Bidders?

Steinar Vagstad

Norway; Department of Economics, University of Bergen from Department of Economics, University of Bergen

Abstract: Consider an auction in which potential bidders must sink an entry investment before learning their values. Suppose the auction designer can make the bidders learn their value before entry. Such early information will induce screening of high-value bidders, and it will give rise to information rents and thereby a difference between the socially optimal auction and the auctioneer's preferred mechanism.

Keywords: AUCTIONS; INVESTMENTS; INFORMATION (search for similar items in EconPapers)
JEL-codes: D44 D82 L10 L51 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2001
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Citations: View citations in EconPapers (2)

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Journal Article: Should auctioneers supply early information for prospective bidders? (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:bereco:0701

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