On the benefits of dynamic bidding when participation is costly


Consider a second-price auction with costly bidding in which bidders with i.i.d. private values have multiple opportunities to bid. If bids are observable, the resulting dynamic-bidding game generates greater expected total welfare than if bids were sealed, for any given reserve price. Making early bids observable allows highvalue bidders to signal their… (More)
DOI: 10.1016/j.jet.2015.03.003


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