Resource title

Optimal sequential auctions

Resource image

image for OpenScout resource :: Optimal sequential auctions

Resource description

Sequential sealed rst-price and open ascending bid auctions are studied. We examine which auction rule achieves the low procurement cost. We show that the answer to this policy question depends on whether the items are com- plements or substitutes. With substitutes, the rst-price auction is preferred, while with complementarities, the open ascending bid auction is preferred. We also illustrate the procurement cost minimizing auction and the auction rule preferred by the bidders. With substitutes, bidders prefer the open ascending bid auction, while with complements bidders prefer the rst-price auction.

Resource author

Resource publisher

Resource publish date

Resource language

en

Resource content type

application/pdf

Resource resource URL

http://eprints.lse.ac.uk/4911/1/optimal_sequential_auctions_LSERO.pdf

Resource license