Reserve prices in second-price auctions with asymmetric bidders
摘要
In second-price auctions with asymmetric bidders, we show that under a monotonicity condition on the ratio of marginal revenue functions there exists a unique optimal reserve price. The optimal reserve price increases with the number of (stochastically) strong bidders and decreases with the number of weak bidders. Fixing the total number of bidders, the seller’s revenue increases with the number of strong bidders.