Conjugate information disclosure in an auction with learning

A-Tier
Journal: Journal of Economic Theory
Year: 2017
Volume: 171
Issue: C
Pages: 174-212

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We consider a single-item, independent private value auction environment with two bidders: a leader, who knows his valuation, and a follower, who privately chooses how much to learn about his valuation. We show that, under some conditions, an ex-post efficient revenue-maximizing auction—which solicits bids sequentially—partially discloses the leader's bid to the follower, to influence his learning. The disclosure rule that emerges is novel; it may reveal to the follower only a pair of bids to which the leader's actual bid belongs. The identified disclosure rule, relative to the first-best, induces the follower to learn less when the leader's valuation is low and more when the leader's valuation is high.

Technical Details

RePEc Handle
repec:eee:jetheo:v:171:y:2017:i:c:p:174-212
Journal Field
Theory
Author Count
2
Added to Database
2026-01-28