Ewerhart, Christian; Cassola, Nuno; Valla, Natacha - In: Journal of Banking & Finance 36 (2012) 2, pp. 539-549
policies. While academic research has largely dismissed the procedure owing to its tendency to encourage overbidding, central … an auction-theoretic setting with private information about declining marginal valuations. Since overbidding entails … exposure risk, an equilibrium may exist even if bids are costless and the intended volume is pre-announced. In fact, the …