Janssen, Maarten C.W.; Karamychev, Vladimir A. - In: Economic Journal 120 (2010) 549, pp. 1319-1344
We consider a government auctioning off multiple licences to firms that compete in an aftermarket. Firms have different costs, and cost-efficiency is private information in the auction and in the aftermarket. If only one licence is auctioned, standard results say that the most efficient firm...