EQUILIBRIA IN OPEN COMMON VALUE AUCTIONS

A sufficient condition for uniqueness of Nash equilibrium in second-price, common value auctions is identified. We establish that there exists a continuum of equilibria in irrevocable exit, common value auctions. For the case of two bidders, we provide plausible sufficient conditions under which the expected seller revenue is maximized at the symmetric equilibrium. An example in which the auctioneer's revenue at the symmetric equilibrium in a second-price auction is strictly greater than the revenue at many asymmetric equilibria in the corresponding irrevocable exit auction is provided. © 1991.