Auctions with Heterogeneous Entry Costs

  title={Auctions with Heterogeneous Entry Costs},
  author={Diego Moreno and John Wooders},
It is well known that if bidders have independent private values and homogeneous entry costs a …rstor second-price auction with a reserve price equal to the seller’s value maximizes social surplus and seller revenue, and leaves bidders with no surplus. We show that if entry costs are heterogeneous and private information, then the revenue maximizing reserve… CONTINUE READING