Interdependent value auctions with insider information: Theory and experiment

• 成果类型: Article
• 署名作者: Choi, Syngjoo; Guerra, Jose-Alberto; Kim, Jinwoo
• 署名单位: Seoul National University (SNU); Universidad de los Andes (Colombia)
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2019.06.007
• 发表日期: 2019
• 页码: 218-237
• 关键词: Interdependent value auctions; Asymmetric information structure; Second-price auction; English auction; experiment

摘要

We develop a model of interdependent value auctions in which two types of bidders compete: insiders, who are perfectly informed about their value, and outsiders, who are informed only about the private component of their value. Because the bidding strategy of outsiders cannot efficiently adjust with that of insiders, the second-price auction is inefficient. The English auction has an equilibrium in which the information outsiders infer from the history of drop-out prices enables them to bid toward attaining efficiency. The presence of insiders has positive impacts on the seller's revenue. A laboratory experiment confirms key theoretical predictions, despite evidence of naive bidding. (C) 2019 Elsevier Inc. All rights reserved.