Document Type
Discussion Paper
Publication Date
8-1-1979
CFDP Number
531
CFDP Pages
11
Abstract
The auction of an object is considered, for the case in which one bidder is better-informed than the others concerning the actual value of the object. An equilibrium point solution of the competitive bidding game is determined; at this equilibrium, the expected revenue of the less-well-informed bidders is zero. The case of an object which can take only values from a discrete set is dealt with as the limit of auctions of continuously-valued objects.
Recommended Citation
Engelbrecht-Wiggans, Richard and Weber, Robert J., "Competitive Bidding and Proprietary Information" (1979). Cowles Foundation Discussion Papers. 766.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/766