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Revenues and Welfare in Auctions with Information Release

Schweizer, Nikolaus - 2015

Auctions are the allocation-mechanisms of choice whenever goods and information in markets are scarce. Therefore, understanding how information affects welfare and revenues in these markets is of fundamental interest. We introduce new statistical concepts, k- and k-m-dispersion, for...

Persistent link: https://www.econbiz.de/10013014354

Can There Be a Market for Cheap-Talk Information? An Experimental Investigation

Cabrales, Antonio - 2018

This paper reports on experiments testing the viability of markets for cheap talk information. We find that the poor quality of the information transmitted leads to a collapse of information markets. The reasons for this are surprising given the previous experimental results on cheap-talk games....

Persistent link: https://www.econbiz.de/10012917514

Endogenous Public Information and Welfare in Market Games

Vives, Xavier - 2016

This paper performs a welfare analysis of economies with private information when public information is endogenously generated and agents can condition on noisy public statistics in the rational expectations tradition. We find that equilibrium is not (restricted) efficient even when feasible...

Persistent link: https://www.econbiz.de/10013008600

Auctions vs. Negotiations : The Case of Favoritism

Gretschko, Vitali - 2013

– that an intransparent negotiation yields a higher buyer surplus than a transparent auction for a range of parameters. In …

Persistent link: https://www.econbiz.de/10013089156

'Buy-it-Now' or 'Sell-it-Now' Auctions : Effects of Changing Bargaining Power in Sequential Trading Mechanisms

Grebe, Tim - 2016

at a fixed price before an auction. In the “Buy-It-Now” format, the seller has the bargaining power and offers a price … prior to the auction; whereas in the “Sell-It-Now” format, it is the buyer. Both formats are extensively used in online and … auction …

Persistent link: https://www.econbiz.de/10013000430

The Herodotus Paradox

Baye, Michael R.; Kovenock, Daniel J.; Vries, Casper G. de - 2021

The Babylonian bridal auction, described by Herodotus, is regarded as one of the earliest uses of an auction in history …. Yet, to our knowledge, the literature lacks a formal equilibrium analysis of this auction. We provide such an analysis for …

Persistent link: https://www.econbiz.de/10013316185

An Externality-Robust Auction : Theory and Experimental Evidence

Bartling, Björn - 2014

An auction is externality-robust if unilateral deviations from equilibrium leave the other bidders' payoffs unaffected … externalities due to spiteful preferences, which have been used to explain overbidding in the second-price auction (SPA). Another … example are cross-shareholdings between companies that compete in an auction. We derive an auction that coincides with the SPA …

Persistent link: https://www.econbiz.de/10013054012

Auctions vs. Negotiations : The Effects of Inefficient Renegotiation

Herweg, Fabian - 2015

For the procurement of complex goods the early exchange of information is important to avoid costly renegotiation ex post. We show that this is achieved by bilateral negotiations but not by auctions. Negotiations strictly outperforms auctions if sellers are likely to have superior information...

Persistent link: https://www.econbiz.de/10013024680

The Design of Ambiguous Mechanisms

Di Tillio, Alfredo - 2014

This paper explores the sale of an object to an ambiguity averse buyer. We show that the seller can increase his profit by using an ambiguous mechanism. That is, the seller can benefit from hiding certain features of the mechanism that he has committed to from the agent. We then characterize the...

Persistent link: https://www.econbiz.de/10013047263

Competing with Asking Prices

Lester, Benjamin - 2016

In many markets, sellers advertise their good with an asking price. This is a price at which the seller will take his good off the market and trade immediately, though it is understood that a buyer can submit an offer below the asking price and that this offer may be accepted if the seller...

Persistent link: https://www.econbiz.de/10012986936