We compare auctions with bidder qualification before or after the bidding process. We show that although post-auction qualification is more efficient, the auctioneer prefers pre-auction qualification when bidders’ qualification costs are high.

Gillen, Philippe, Vitali Gretschko and Alexander Rasch (2016), Pre-auction or post-auction qualification?, Economic Theory Bulletin. Download

Authors

Gillen, Philippe
Gretschko, Vitali
Rasch, Alexander

Keywords

Bidding cost; Qualification; Second-price sealed-bid auction