If an item being auctioned has independent private values, the expected revenue is the same for all auction types.

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In auctions with independent private values, each bidder has a different (private) valuation of the item being auctioned. In this case, the expected revenue from the auction is the same for all auction types, including first-price sealed-bid, second-price sealed-bid, and English (ascending clock) auction. This is known as the revenue equivalence theorem.

If an Item Being Auctioned Has Independent Private Values, the Expected