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Article
The Consequences of Information Revealed in Auctions
Applied Economics Research Bulletin
  • Brett E. Katzman, Kennesaw State University
  • Matthew Rhodes-Kropf, Columbia University
Department
Economics, Finance, & Quantitative Analysis
Document Type
Article
Publication Date
3-1-2008
Abstract
This paper considers the ramifications of post-auction competition on bidding behavior under different bid announcement policies. In equilibrium, the auctioneer’s announcement policy has two distinct effects. First, announcement entices players to signal information to their post-auction competitors through their bids. Second, announcement can lead to greater bidder participation in certain instances while limiting participation in others. Specifically, the participation effect works against the signalling effect, thus reducing the impact of signalling found in other papers. Revenue, efficiency, and surplus implications of various announcement policies are examined.
Citation Information
Katzman, Brett E. and Matthew Rhodes-Kropf. (2008). "The Consequences of Information Revealed in Auctions." Applied Economics Research Bulletin. Vol. 2, March 2008, 53-87.