Information Acquisition During a Descending Auction
University of Cologne; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
CEPR Discussion Paper No. DP7023
If bidders can acquire information during the auction the descending auction is no longer equivalent to a first-price-sealed-bid auction. Revenue equivalence does not hold. The incentive to acquire information can even be larger in a descending auction than in an ascending auction.
Number of Pages in PDF File: 28
Keywords: Descending auction, Dutch auction, First price sealed bid auction, Information acquisition
JEL Classification: D44, D82, D83working papers series
Date posted: December 18, 2008
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