QED Working Paper Number
976

A phantom bidding model is analyzed for a sale auction. The following questions are addressed: the effects of phantom bidding on overall social welfare and buyers' profits. It is shown that social welfare may increase or decrease as the auctioneer switches from the fixed reserve price policy to phantom bidding. The buyers' profits will increase whenever social welfare increases.

Author(s)
Parimal Kanti Bag
Emim Murat Dinlersoz
JEL Codes
Keywords
Fixed/Flexible Reserve Price
English Auction
Phantom Bidding
Working Paper