DP7023 Information Acquisition During a Descending Auction
Author(s): | Achim Wambach |
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: | 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.