Information Revelation in Procurement Auctions with Two-Sided Asymmetric Information
نویسندگان
چکیده
منابع مشابه
Information revelation in auctions
Auction theory has emphasized the importance of private information to the profits of bidders. However, the theory has failed to consider the question of whether or not bidders will be able to keep their information private. We show that in a variety of contexts bidders will reveal all their information, even if this information revelation is (ex ante) detrimental to them. Similarly, a seller m...
متن کاملInformation-Revelation and Coordination Using Cheap Talk in a Game with Two-Sided Private Information
We consider a Bayesian game, namely the Battle of the Sexes with private information, in which each player has two types, High and Low. We allow cheap talk regarding players’ types before the game and prove that the unique fully revealing symmetric cheap talk equilibrium exists for a low range of prior probability of the High-type. This equilibrium has a desirable type-coordination property : i...
متن کاملPrivate information revelation in common-value auctions
When a seller has information that could help bidders to estimate asset value, a dictum of auction theory has been that all such information should be publicly announced to bidders. The possibility of privately revealing this information to one or more bidders is introduced. Seller in some circumstances may attain higher expected revenue through revealing his information privately. Examples sho...
متن کاملInformation Revelation in Sequential Ascending Auctions
We examine a model in which buyers with single-unit demand are faced with an infinite sequence of auctions. In each period, a new buyer probabilistically arrives to the market, and is endowed with a constant private value. We demonstrate by way of a simple example the inefficiency of the second-price sealed-bid auction in this setting, and therefore focus instead on the ascending auction. We th...
متن کاملFavoritism in Asymmetric Procurement Auctions
I examine the economic costs and benefits of granting a right of first refusal to one of two bidders in a procurement auction. This right permits the favored bidder to win a contract by matching the bid of the competing bidder. Such a right, is often observed in business interactions, especially procurement. It is commonly thought that the right of first refusal lowers the payoff to the auction...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Economics & Management Strategy
سال: 2014
ISSN: 1058-6407
DOI: 10.1111/jems.12075