Optimal disclosure of costly information packages in auctions

B-Tier
Journal: Journal of Mathematical Economics
Year: 2011
Volume: 47
Issue: 4-5
Pages: 462-469

Authors (1)

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

In an independent, private values, second-price auction with entry fees we discuss the way in which a seller should optimally spread costly information among the bidders. We find that marginal gross revenues do not generally behave monotonically in total information release. In the two bidder case, essentially, any asymmetric allocation of information dominates the symmetric information allocation. Even the bidder who gets less information is willing to pay a higher entry fee for asymmetric information allocations than for the symmetric one. His entry fee coincides with that of the better informed bidder. Losses from allocating an amount of information non-optimally can be substantial.

Technical Details

RePEc Handle
repec:eee:mateco:v:47:y:2011:i:4:p:462-469
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29