Events at CERGE-EI

Friday, 18 November, 2022 | 14:30 | Micro Theory Research Seminar

Alp E. Atakan (Koç University) "Information Aggregation in Auctions with Costly Information"

Prof. Alp E. Atakan

Koç University, Turkey
Queen Mary University of London, United Kingdom

Join online: https://call.lifesizecloud.com/16329444  (password 5589)


Authors: Alp E. Atakan, Mehmet Ekmekci

Abstract: We study a common-value auction in which a large number of identical, indivisible object are sold to a large number of ex-ante identical bidders with unit demand. Bidders are initially uninformed but can acquire information from multiple sources that differ in accuracy and cost. We define a certain cost-accuracy ratio for each available source of information. The minimum value for this cost-accuracy ratio among all information sources determines the information content of the auction's price and information is aggregated if and only if the cost-accuracy ratio is equal to zero. In particular, the cost-accuracy ratio is equal to zero and information is aggregated if the set of experiments is rich, the cost of information is convex and satisfies a certain rho-monotonicity property.