Comment on Auction Choice for Ambiguity-Averse Sellers Facing Strategic Uncertainty

This note demonstrates epsilon equilibria in the first-price auction that achieve lower worst-case expected revenues than the lower bound proposed by Turocy (2008) (Auction choice for ambiguity-averse sellers facing strategic uncertainty, Games Econ. Behav. 62 (2008) 155–179). Additionally, it stresses the importance of a careful specification of the action space to properly characterize expected revenues when bidders systematically deviate from equilibrium play.