Bidding with securities: Auctions and security design

• 成果类型: Article
• 署名作者: DeMarzo, PM; Kremer, I; Skrzypacz, A
• 署名单位: Stanford University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/0002828054825475
• 发表日期: 2005
• 页码: 936-959
• 关键词: contingent payments; asymmetric information; Strategic stability; signaling games; CONTRACTS; equilibria; COMPETITION; management; winners

摘要

We study security-bid auctions in which bidders compete for an asset by bidding with securities whose payments are contingent on the asset's realized value. In formal security-bid auctions, the seller restricts the security design to an ordered set and uses a standard auction format (e.g., first- or second-price). In informal settings, bidders offer arbitrary securities and the seller chooses the most attractive bid, based on his belie, ex post. We characterize equilibrium and show that steeper securities yield higher revenues, that auction formats can be ranked based on the security design, and that informal auctions lead to the lowest possible revenues.