Note—Competitive Bidding with Asymmetric Information Reanalyzed

This note reanalyzes the following problem, formerly treated by Wilson (Wilson, R. B. 1967. Competitive bidding with asymmetric information. Management Sci. 13 (July) 816–820): two parties have to submit bids for an object One of them knows the value with certainty, the other does not. The equilibrium derived differs from Wilson's solution and yields a simple explanation for the case cited by Wilson: the value of the game is essentially zero for the party with incomplete information.

• 저널Management Science · 25(3) · 291–294
• 토픽Auction Theory and Applications · Management Science and Operations Research
• DOI10.1287/mnsc.25.3.291
• 저자Marcel Weverbergh