In a common-value auction, the bids of other bidders can influence the maximum amount that one is willing to pay for an object, while in a private-value auction this is not the case.

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In a common-value auction, the value of the object is uncertain and depends on information that is not available to individual bidders. This creates a situation where the bids of other bidders can influence one's own valuation and maximum willingness to pay. In contrast, in a private-value auction, each bidder has a private valuation of the object that is not affected by the valuations of other bidders.

In a Common-Value Auction, the Bids of Other Bidders Can