A Sealed-Bid Auction that Matches the English Auction

Authors: 
Motty Perry, Elmar Wolfstetter & Shmuel Zamir
Abstract: 

This paper analyzes a two-stage sealed-bid auction that is frequently employed in privatization, takeover, and merger and acquisition contests. This auction format yields the same expected revenue as the open ascending (English) auction, yet is less susceptible to preemptive bidding and collusion.

Date: 
August, 1998
Published in: 
Games and Economic Behavior 33 (2000), 265-273.
Number: 
181