Competitive Bidding and Proprietary Information
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.
Engelbrecht-Wiggans, Richard and Weber, Robert J., "Competitive Bidding and Proprietary Information" (1979). Cowles Foundation Discussion Papers. 766.