Competitive Information Disclosure to an Auctioneer

We analyze how voluntary disclosure of information by bidders affects the outcome optimally designed auctions. In a single-object auction environment, we assume that before revenue-maximizing auctioneer designs auction, noncooperatively choose signal structures disclose about their valuations. show an equilibrium exists in this two-stage game and every object is sold with probability one. Our main result concerns consequences for auctioneer’s revenue. If benchmark without remains unsold positive probability, then yields strictly higher revenue equilibrium. (JEL D44, D82, D83)