Discussion paper

DP7023 Information Acquisition During a Descending Auction

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.

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Citation

Wambach, A (2008), ‘DP7023 Information Acquisition During a Descending Auction‘, CEPR Discussion Paper No. 7023. CEPR Press, Paris & London. https://cepr.org/publications/dp7023