Optimal advertising of auctions

A-Tier
Journal: Journal of Economic Theory
Year: 2011
Volume: 146
Issue: 6
Pages: 2596-2607

Authors (1)

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

We study a symmetric independent private values auction model where the revenue-maximizing seller faces a cost cn of attracting n bidders to the auction. If the distribution of valuations possesses an increasing failure rate (IFR), the seller overinvests in attracting bidders compared to the social optimum. Conversely, if the distribution is DFR, the seller underinvests compared to the social optimum. If the distribution of valuations becomes more dispersed, both, a revenue- and a welfare-maximizing seller, attract more bidders.

Technical Details

RePEc Handle
repec:eee:jetheo:v:146:y:2011:i:6:p:2596-2607
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29