Auctions when bidders prepare by investing in ideas

Authors
Jeitschko, TD Wolfstetter, E
Citation
Td. Jeitschko et E. Wolfstetter, Auctions when bidders prepare by investing in ideas, ECON LETT, 68(1), 2000, pp. 61-66
Citations number
5
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
68
Issue
1
Year of publication
2000
Pages
61 - 66
Database
ISI
SICI code
0165-1765(200007)68:1<61:AWBPBI>2.0.ZU;2-7
Abstract
We consider auctions assuming bidders spend resources to increase their val uations. Standard auctions are efficient, yet reserve price requirements en tail a double inefficiency. Moreover, optimal auctions differ from the well -known static optimum. Finally we sketch the impact of information spillove rs. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classification: D44.