Artikel

Manipulative auction design

This paper considers an auction design framework in which bidders get partial feedback about the distribution of bids submitted in earlier auctions: either bidders are asymmetric but past bids are disclosed in an anonymous way or several auction formats are being used and the distribution of bids but not the associated formats are disclosed. I employ the analogy-based expectation equilibrium (Jehiel, 2005) to model such situations. First-price auction in which past bids are disclosed in an anonymous way generates more revenues than the second-price auction while achieving an efficient outcome in the asymmetric private values two-bidder case with independent distributions. Besides, by using several auction formats with coarse feedback a designer can always extract more revenues than in Myerson's optimal auction, and yet less revenues than in the full information case whenever bidders enjoy ex-post quitting rights and the assignment and payment rules are monotonic in bids. These results suggest an important role of feedback disclosure as a novel instrument in mechanism design.

Language
Englisch

Bibliographic citation
Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 6 ; Year: 2011 ; Issue: 2 ; Pages: 185-217 ; New Haven, CT: The Econometric Society

Classification
Wirtschaft
Noncooperative Games
Asymmetric and Private Information; Mechanism Design
Expectations; Speculations
Subject
Auction design
feedback equilibrium
manipulation

Event
Geistige Schöpfung
(who)
Jehiel, Philippe
Event
Veröffentlichung
(who)
The Econometric Society
(where)
New Haven, CT
(when)
2011

DOI
doi:10.3982/TE687
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Jehiel, Philippe
  • The Econometric Society

Time of origin

  • 2011

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