Competitive Bidding in Auctions with Private and Common Values
Jacob Goeree () and
Theo Offerman ()
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Theo Offerman: CREED, University of Amsterdam
No 00-044/1, Tinbergen Institute Discussion Papers from Tinbergen Institute
See the article with the same title in the 'Economic Journal' (2003), 113, 598-614. The objects for sale in most auctions possess both private and common value elements. This salient feature has not yet been incorporated into a strategic analysis of equilibrium bidding behaviour. This paper reports such an analysis for a stylised model in which bidders receive a private value signal and an independent common value signal. We show that more uncertainty about the common value has a negative effect on efficiency. Information provided by the seller decreases uncertainty, which raises efficiency and seller's revenues. Efficiency and revenues are also higher when more bidders enter the auction. This discussion paper has resulted in a publication in The Economic Journal , 2003, 113(489), 598-613.
Keywords: Auctions; inefficiencies; information disclosure; competition (search for similar items in EconPapers)
JEL-codes: C72 D44 (search for similar items in EconPapers)
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Journal Article: Competitive Bidding in Auctions with Private and Common Values (2003)
Working Paper: Competitive Bidding in Auctions with Private and Common Values (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20000044
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