Information concentration in common value environments |
| |
Authors: | Vlad Mares Mikhael Shor |
| |
Institution: | 1. INSEAD, Boulevard de Constance, 77305, Fontainebleau, France 2. Department of Economics, University of Connecticut, 365 Fairfield Way Unit 1063, Storrs, CT, 06269-1063, USA
|
| |
Abstract: | We consider how information concentration affects a seller’s revenue in common value auctions. The common value is a function of $n$ random variables partitioned among $m \le n$ bidders. For each partition, the seller devises an optimal mechanism. We show that whenever the value function allows scalar sufficient statistics for each player’s signals, the mechanism design problem is well-defined. Additionally, whenever a common regularity condition is satisfied, a coarser partition always reduces revenues. In particular, any merger or collusion among bidders reduces revenue. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|