Information provision in procurement auctions
Submitted by admin on 18 December 2013 - 12:00pm
Available from:
October 2013
Topic:
Financial Economics
Theory
Year:
2013
We analyze the optimal provision of information by a buyer who needs a good to be procured through an auction. The buyer has private information about his preferred location on the product space and may reveal it at no cost. Sellers have a positive entry cost and choose locations simultaneously before competing in prices. We characterize the optimal information structure and show that his surplus is maximal with only two sellers. We also show that committing to set up the rules of the auction before entry takes place increases consumer surplus.
Go back to Theory
Research section:
Lacea 2013 annual meeting
