Dynamic Consistency, Revelations in Auctions and the Structure of Preferences

S-Tier
Journal: Review of Economic Studies
Year: 1989
Volume: 56
Issue: 3
Pages: 421-433

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

Analyzing the optimal bidding behaviour in ascending-bid auctions and second-price sealed-bid auctions with independent private values, we show that expected utility maximizing behaviour is equivalent to: (a) dynamically consistent bidding in ascending-bid auctions; (b) the equivalence of the optimal bids in ascending-bid auctions and in second-price sealed-bid auctions; (c) bidding the value of the object in second-price sealed-bid auctions. In addition, the optimal bid in ascending-bid auctions equals the value of the object if and only if the bidder's preferences on lotteries are both quasi-concave and quasi-convex.

Technical Details

RePEc Handle
repec:oup:restud:v:56:y:1989:i:3:p:421-433.
Journal Field
General
Author Count
2
Added to Database
2026-01-25