The value of information in a sealed-bid auction

摘要: Abstract In this paper, we explore bidders' incentives to gather information in auctions, when there is one bidder with only public and another some private information. We find that the makes no profit at equilibrium, while generally positive profits. Moreover, informed bidder's profits rise he gathers extra information, increase greater collected overtly than it covertly. When uniformed can observe of better-informed prefers make his observations If seller has access or if affiliated own, raise expected price by adopting a policy making public. However, are cases where publicizing would lower price. The distinguishing feature these latter seems be seller's complementary bidder.