The Consequences of Information Revealed in Auctions
Columbia Business School, Economics and Finance Working Paper
59 Pages Posted: 17 Oct 2001
Date Written: October 2001
This paper considers the ramifications of post-auction competition on bidding behavior under different bid announcement policies. In equilibrium, players attempt to signal information to their post-auction competitors through their bids. Thus, an auctioneer can take advantage of these attempts by strategically selecting which bids to announce and which to conceal. Revenue and efficiency implications of various announcement policies are examined and used to explain the prevalence of certain auction procedures in the world today.
Keywords: Information, Auction, Revenue Equivalence, Signalling, Participation, Cournot, Bertrand
JEL Classification: D44, D89
Suggested Citation: Suggested Citation