A Note on Competitive Bidding with Asymmetric Information
Published Online:1 Nov 1985https://doi.org/10.1287/mnsc.31.11.1431
Abstract
This note reexamines a problem of competitive bidding under asymmetrical information about the value of the object which was originally formulated and studied by R. Wilson (Wilson, R. B. 1967. Competitive bidding with asymmetric information. Management Sci.13 816–820.). We analyze the Stackelberg equilibria of the game under alternative behavioral assumptions about the sequencing of moves. The relative gains of the seller and the two buyers are computed for specific numerical examples.
