Document Type

Discussion Paper

Publication Date

12-22-2023

CFDP Number

2375

CFDP Pages

72

Journal of Economic Literature (JEL) Code(s)

D44, D47, D83, D84

Abstract

We characterize the bidders' surplus maximizing information structure in an optimal auction for a single unit good and related extensions to multi-unit and multi-good problems. The bidders seeks to find a balance between participation (and the avoidance of exclusion) and efficiency. The information structure that maximizes the bidders surplus is given by a generalized Pareto distribution at the center of demand distribution, and displays complete information disclosure at either end of the Pareto distribution.

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