On the Sub-optimality of Entry Fees in Auctions With Entry
(2006)
Journal Article
Hernando-Veciana, Á. (2006). On the Sub-optimality of Entry Fees in Auctions With Entry. Review of Economic Design, 10(1), 53-61. https://doi.org/10.1007/s10058-006-0001-4
We study a variation of Myerson’s (1981) model in which we allow for uncertainty about the number of bidders. In our set-up, an appropriate reserve price in a standard auction maximizes the auctioneer’s expected revenue. However, entry fees can be op... Read More about On the Sub-optimality of Entry Fees in Auctions With Entry.