Within an affiliated value auction setting, we study the relationship between the number of bidders and the winner’s curse in terms of its frequency of occurrence and its expected harm. From a design perspective, we find that both the number of bidders and the level of affiliation are instrumental when choosing an auction format and whether to encourage or discourage bidder participation.
- d44 - Auctions
- d82 - "Asymmetric and Private Information; Mechanism Design"
- h57 - National Government Expenditures and Related Policies: Procurement
- winner's curse
- number of bidders
- affiliated value auctions
- COMMON VALUE AUCTIONS