Selling to Advised Buyers

• 成果类型: Article
• 署名作者: Malenko, Andrey; Tsoy, Anton
• 署名单位: Massachusetts Institute of Technology (MIT)
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20170334
• 发表日期: 2019
• 页码: 1323-1348
• 关键词: information acquisition; Optimal auctions; cheap-talk; COMMUNICATION; disclosure

摘要

In many cases, buyers are not informed about their valuations and rely on experts, who are informed but biased for overbidding. We study auction design when selling to such advised buyers. We show that a canonical dynamic auction, the English auction, has a natural equilibrium that outperforms standard static auctions in expected revenues and allocative efficiency. The ability to Communicate as the auction proceeds allows for more informative communication and gives advisors the ability to persuade buyers into overbidding. The same outcome is the unique equilibrium of the English auction when bidders can commit to contracts with their advisors. (JEL D44, D82, D83, D86)