A Note on Revenue Effects of Asymmetry in Private-Value Auctions

Paper number: 01/10

Paper date: December 13, 2001

Year: 2001

Paper Category: Working Paper

Authors

Todd R. Kaplan and Shmuel Zamir

Abstract

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?

A Note on Revenue Effects of Asymmetry in Private-Value Auctions A Note on Revenue Effects of Asymmetry in Private-Value Auctions