Fan, Cuihong; Jun, Byoung Heon; Wolfstetter, Elmar G. - In: Economic Theory Bulletin 11 (2023) 2, pp. 255-275
We analyze Stackelberg leadership in a first-price auction. Leadership is induced by an information system, represented by a spy, that leaks one bidder’s bid before others choose their bids. However, the leader may secretly revise his bid with some probability; therefore, the leaked bid is...