Working Paper

A Sealed-Bid Auction that Matches the English Auction

Motty Perry, Elmar G. Wolfstetter, Shmuel Zamir
Munich CESifo, 2000

CESifo Working Paper No. 249

This paper analyzes a two-stage sealed-bid auction that is frequently employed in privatization, takeover, and merger and acquisition contests. This auction format yields the same expected revenue as the open ascending (English) auction, yet is less susceptible to preemptive bidding and collusion.

Keywords: Auctions
JEL Classification: D440