DP7023 Information Acquisition During a Descending Auction
|Publication Date:||October 2008|
|Keyword(s):||Descending auction, Dutch auction, First price sealed bid auction, Information acquisition|
|JEL(s):||D44, D82, D83|
|Programme Areas:||Industrial Organization|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=7023|
If bidders can acquire information during the auction the descending auction is no longer equivalent to a first-price-sealed-bid auction. Revenue equivalence does not hold. The incentive to acquire information can even be larger in a descending auction than in an ascending auction.