Regulating Bidder Participation in Auctions
Vivek Bhattacharya, James Roberts, and Andrew Sweeting ,
4
( 45 )
The RAND Journal of Economics
675-704
October
2014
Abstract

Regulating bidder participation in auctions can potentially increase efficiency compared to standard auction formats with free entry. We show that the relative performance of two such mechanisms, a standard first-price auction with free entry and an entry rights auction, depends nonmonotonically on the precision of information that bidders have about their costs prior to deciding whether to participate in a mechanism.

Links to Researchers