STICERD Economic Theory Seminars
First price auctions with general information structures: Implications for bidding and revenue
Ben Brooks (University of Chicago), joint with Dirk Bergemann and Stephen Morris
Thursday 19 November 2015 15:30 - 17:00
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Unless otherwise specified, in-person seminars are open to the public.
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About this event
This paper explores the impact of private information in sealed bid first price auctions. For a given symmetric and arbitrarily correlated prior distribution over values, we characterize the lowest winning bid distribution that can arise across all information structures and equilibria. The information and equilibrium attaining this minimum leave bidders uncertain whether they will win or lose and indifferent between their equilibrium bids and all higher bids. Our results provide lower bounds for bids and revenue with asymmetric distributions over values. We report further analytic and computational characterizations of revenue and bidder surplus. Our work has implications for the identification of value distributions from winning bid data and for the informationally robust comparison of alternative mechanisms.
Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, ONLINE or ONLINE AND IN PERSON at the same time.
Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.
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