Consider an auction with 1,000 risk-neutral bidders.It is known that these bidders have affiliated values.Based on this information,we know the expected revenues for the different auction types will be:

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In auctions with risk-neutral bidders and affiliated values, the revenue equivalence theorem does not necessarily hold, and the expected revenues can differ across auction types. The English auction and the second-price, sealed-bid auction are known to generate higher expected revenues than the first-price, sealed-bid and Dutch auctions due to the winner's curse being mitigated. Among these, the English auction can potentially generate even higher revenues than the second-price, sealed-bid auction because it allows for dynamic bidding, which can lead to higher final bids as bidders update their valuations based on others' bids.

Consider an Auction with 1,000 Risk-Neutral Bidders