Resumen de Auctions with Incumbents and Newcomers

María Ángeles Frutos, Xavier Jarque Ribera

• We study the performance of the first-price format in auctions with asymmetric common-values. We show that, contrary to the result for second price auctions, a small advantage for one player translates only to small changes in bidders� strategies, and the equilibrium remains close to the first-price equilibrium of the original game. We characterize the equilibrium bidding strategies and their behavior as the degree of asymmetry increases. Finally, we study the performance, to enhance the government revenue, of several instruments to favor designated bidders.