Under a specific informational framework, we compare the seller's expected revenue from a first-price auction and a second-price auction when bidders are risk averse and have private affiliated values.

There are a number of examples in the auction literature (Perry and Reny, 1999, and Krishna, 2002) where releasing the seller's private information can lead to a lowering of expected revenue. On the other hand, releasing information always increases welfare. Levin and Smith (1994) point out that...

By reviewing the current Xetra auction price mechanism and analyzing its economic properties, we discover that Xetra auction price is generically non market-clearing and that only limit prices are considered as Xetra auction price, which prevents a market-clearing price but not a limit price...