Document Type


Publication Date



We study the effect of the drop out and reenter information in an environment where bidders‟ values involve both private and common value components. We find that (1) providing bidding information does not have a significant effect on expected revenue and expected efficiency. (2) The effect of information on winner‟s expected profit depends on the range of uncertainty of the common value component and the level of Nash profit prediction, which the auctioneer has no a priori knowledge. In our environment, where bidders have a private component to their value and the auction takes place in ascending clock format, (3) bidders do not suffer from the winner‟s curse when information is not provided. (4) Information substantially increases the variability of revenue and winner‟s profit when the range of uncertainty of the common value component is large. (5) Bidders‟ response to information depends on the range of uncertainty.


Working Paper 11-13



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.