DeMarzo, Peter M.; Kremer, Ilan; Skrzypacz, Andrzej - In: American Economic Review 95 (2005) 4, pp. 936-959
We study security-bid auctions in which bidders compete for an asset by bidding with securities whose payments are contingent on the asset's realized value. In formal security-bid auctions, the seller restricts the security design to an ordered set and uses a standard auction format (e.g.,...