AUCTIONS WITH PRICE-PROPORTIONAL BENEFITS TO BIDDERS

After some auctions, including Amish estate sales and buyer rings' kno ckout auctions, each bidder receives a share of the revenue generated by the auction We show that in the symmetric case, equilibrium bids in both first-price sealed-bid auctions and oral auctions increase as ea ch bidder's share increases. In the case of independent signals, oral auctions result in higher expected equilibrium prices than do first-pr ice sealed-bid auctions. Journal of Economic, Literature classificatio n number: D44. (C) 1994 Academic Press, Inc.