A Note on Revenue Effects of Asymmetry in Private-Value Auctions
Paper number: 01/10
Paper date: December 13, 2001
Paper Category: Working Paper
Todd R. Kaplan and Shmuel Zamir
The purpose of this note is to suggest a way to formulate and study the question of whether asymmetry of buyers (in the sense of having di®erent prior probability distributions of valuations) is helpful or harmful to the seller in private-value auctions. Do they generate higher or lower expected selling revenue than auctions in which buyers are symmetric?