Article ID: | iaor20103184 |
Volume: | 7 |
Issue: | 1 |
Start Page Number: | 137 |
End Page Number: | 142 |
Publication Date: | Mar 2010 |
Journal: | Decision Analysis |
Authors: | Rothkopf Michael H, Harstad Ronald M, Jia Justin |
A wide variety of auction models exhibit close relationships between expected revenue and the second-highest order statistic of bidders' expected asset values. Similarly close relationships between the winner's expected profit and the expected difference between the highest and second-highest order statistics of bidders' information are also common. We use stochastic orderings to see when greater environmental variability of bidders' information enhances expected profit and expected revenue.