Uniqueness of the reserve price with asymmetric bidders

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811-5184-1-PB.pdf

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2016-8

Author

Günay, Hikmet
Meng, Xin
Nagelberg, Mark

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We analyze the optimal reserve price in a second price auction when there are 𝑁 types of bidders whose valuations are drawn from different distribution functions. The seller cannot determine the specific “distribution type” of each bidder. In this paper, we give sufficient conditions for the uniqueness of the optimal reserve price. Then, we give sufficient conditions that ensure the seller will not use a reserve price; hence, the auction will be efficient.

Subject Keywords

Auction, Reserve (Reservation) Price, Asymmetric Bidders

URI

http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/811
https://hdl.handle.net/11511/58193

Journal

ODTÜ Gelişme Dergisi

Collections

Department of Economics, Article

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Citation Formats

H. Günay, X. Meng, and M. Nagelberg, “Uniqueness of the reserve price with asymmetric bidders,” ODTÜ Gelişme Dergisi, vol. 43, no. 2, pp. 497–506, 2016, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/811.