Information Revelation in Sequential Auctions with Uncertainties About Future Objects

HU Erqin,ZHAO Yong,RAO Congjun

Journal of Systems Science & Complexity ›› 2016, Vol. 29 ›› Issue (6) : 1617-1628.

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Journal of Systems Science & Complexity ›› 2016, Vol. 29 ›› Issue (6) : 1617-1628. DOI: 10.1007/s11424-016-4315-1

Information Revelation in Sequential Auctions with Uncertainties About Future Objects

  • HU Erqin1 , ZHAO Yong, RAO Congjun3
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Abstract

In many auctions, buyers know beforehand little about objects to be sold in the future. Whether and how to reveal information about future objects is an important decision problem for sellers. In this paper, two objects are sold sequentially and each buyer’s valuation for the second object is k times that for the first one, and the true value of k is sellers’ private information. The authors identify three factors which affect sellers’ revelation strategies: The market’s competition intensity which is characterized by the number of buyers, buyers’ prior information about the second object, and the difference degree between two objects which is characterized by k. The authors give not only conditions under which revealing information about the second object in advance benefits the seller, but also the optimal releasing amount of information in the market with two sellers and one seller, respectively.

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HU Erqin , ZHAO Yong , RAO Congjun. Information Revelation in Sequential Auctions with Uncertainties About Future Objects. Journal of Systems Science and Complexity, 2016, 29(6): 1617-1628 https://doi.org/10.1007/s11424-016-4315-1
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