Manipulating information revelation with reserve prices

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11640%2F19%3A00525465" target="_blank" >RIV/00216208:11640/19:00525465 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.15609/annaeconstat2009.133.0087" target="_blank" >https://doi.org/10.15609/annaeconstat2009.133.0087</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.15609/annaeconstat2009.133.0087" target="_blank" >10.15609/annaeconstat2009.133.0087</a>

Result language
angličtina
Original language name
Manipulating information revelation with reserve prices
Original language description
We introduce a novel motive for the use of a reserve price as an instrument to raise auction revenues in ascending auctions. The effect that we stress is of inducing coarser information aggregation. The reserve price may prevent information revelation because bidders cannot precisely observe at which price other bidders leave the auction. In simple settings where valuation functions are not symmetric, this may increase the expected revenue of the auction. To illustrate this motive, we exhibit an example in which the use of a reserve price increases revenue even though there are always at least two bidders active for prices higher than the reserve price.
Czech name
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Czech description
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Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
—
OECD FORD branch
50201 - Economic Theory

Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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