Pre-auction offers in asymmetric first-price and second-price auctions

B-Tier
Journal: Games and Economic Behavior
Year: 2008
Volume: 63
Issue: 1
Pages: 145-165

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We consider first-price and second-price auctions with asymmetric buyers, and examine whether pre-auction offers to a subset of buyers are profitable. A single offer is never profitable prior to a second-price auction, but may be profitable prior to a first-price auction. However, a sequence of offers is profitable in either type of auction. In our model, suitably chosen pre-auction offers work because they move the assignment when bidder valuations are "near the top" closer to the optimal, revenue-maximizing assignment.

Technical Details

RePEc Handle
repec:eee:gamebe:v:63:y:2008:i:1:p:145-165
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25