Article ID: | iaor2007509 |
Country: | Netherlands |
Volume: | 34 |
Issue: | 5 |
Start Page Number: | 491 |
End Page Number: | 498 |
Publication Date: | Sep 2006 |
Journal: | Operations Research Letters |
Authors: | Mller Rudolf, Vermeulen Dries, Herings P. Jean-Jacques, Grigorieva Elena |
Keywords: | communication |
This paper is concerned with information revelation in single-item auctions. We compute how much data needs to be transmitted in three strategically equivalent auctions – the Vickrey auction, the English auction and the recently proposed bisection auction – and show that in the truth-telling equilibrium the bisection auction is the best performer.