Abstract
In oral auctions, unlike sealed-bid second-price auctions, the winner never reveals his reservation price. We investigate bidders' strategies in the two auctions when third-parties can exploit information revealed by the auction. When exploitation is likely, oral auctions are more efficient than sealed-bid second-price auctions, and preferred by all participants.
Original language | English (US) |
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Pages (from-to) | 243-248 |
Number of pages | 6 |
Journal | Economics Letters |
Volume | 35 |
Issue number | 3 |
DOIs | |
State | Published - Mar 1991 |
ASJC Scopus subject areas
- Finance
- Economics and Econometrics