Using Bidder Asymmetry to Increase Seller Revenue
Posted: 12 Jan 2004
We construct the optimal selling mechanism in a pure common value environment with two bidders that are not equally well informed. With an optimal mechanism, the seller benefits from bidder asymmetry: her expected revenue increases if the bidder asymmetry increases.
Keywords: Auctions, Common Value, Asymmetric Bidders
JEL Classification: D44, D82
Suggested Citation: Suggested Citation