Auction and the informed seller problem

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Auction and the informed seller problem

A seller possessing private information about the quality of a good attempts to sell it through a second-price auction with announced reserve price. The choice of a reserve price transmits information to the buyers. We compare the outcome of a game where the seller runs himself the auction (signaling) and a game where a monopoly broker chooses the trade mechanism (screening). For the former cas...

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We consider a revenue maximizing seller who, before proposing a mechanism to sell her object(s), observes a vector of signals correlated with buyers’ valuations. Each buyer knows only the signal that the seller observes about him but not the signals she observes about other buyers. The seller therefore has information about buyers’ valuations that is not common knowledge. How will the seller di...

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We consider the problem of a monopolist seller who is selling a good to a potential buyer and is privately informed about some of the good’s attributes. We focus on the case where goods with di¤erent attributes are horizontally di¤erentiated: they appeal di¤erently to di¤erent types of the buyer. Such a market is represented via a standard Hotelling (1929) model, where the seller’s and the buye...

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ژورنال

عنوان ژورنال: Games and Economic Behavior

سال: 2006

ISSN: 0899-8256

DOI: 10.1016/j.geb.2005.08.008