 In a first-price common value auction, a savvy bidder should shade for both of the above purposes.Bid shading is not only a normative theoretical construct, it was detected in the above-mentioned real world auction markets (Jofre-Bonet and Pesendorfer 2003, Zeithammer 2006).Previous theoretical work on sequential auctions focused either on bid shading in
an exogenous sequence of auctions (see, for example, Milgrom and Weber 2000, Jeitschko 1999), or on strategic auctioning to short-lived buyers, who never want to shade their bids (see, for example, Vulcano et al.