If bidders are uncertain whether the auctioneer sticks to the announced reserve, some bidders respond by strategic non-participation, speculating that the auctioneer may revoke the reserve. However, the reserve inadvertently signals the auctioneer's type, which drives a unique separating and a...

We analyze the effect of espionage on pricing in a Bertrand market with substitutes. We explain why incomplete information is essential for a robust espionage equilibrium. Yet, under incomplete information espionage is not always profitable (the second-mover advantage may vanish) and we provide...