Abstract

This paper discusses whether and how the auctioneer should reveal his private information about the numbers of bidders in all-pay auctions with independent-private valuations. We find that if there are at least two bidders then making bidders realize the existence of at least one rival is good for the auctioneer. Further, under the assumption that bidders' valuations are uniformly distributed, we investigate the optimal revelation strategies of the auctioneer who seeks to maximize total expected bids and the highest expected bid, respectively. The conclusions show that the optimal revelation strategies rely on the actual numbers of bidders. To maximize the highest expected bid, the auctioneer should reveal more accurate information.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.