We examine the efficiency and revenue properties of an asymmetric discriminatory auction with two bidders and two objects. While inefficient, a discriminatory auction may result in higher expected revenue than the efficient Vickrey auction

Even though auctions are capturing an increasing share of commerce, they are typically treated in the theoretical economics literature as isolated. That is, an auction is typically treated as a single seller facing multiple buyers or as a single buyer facing multiple sellers. In this paper, we...