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Using proprietary data on auctions during 2006\u20132013, we find that (a) the first stage underwriting auction generates significant information, including predicting the likelihood of devolvement, and bid shading, and (b) the outcome of the underwriting auction may generate enough asymmetry amongst bidders that may make DA dominate UPA in certain counterfactual situations. We document that the unique two-stage auction design provides a market-driven mechanism to simultaneously insure against auction failures and produce information about the quality of the underlying issue. <\/jats:p><jats:p> This paper was accepted by Karl Diether, finance. <\/jats:p>","DOI":"10.1287\/mnsc.2019.3565","type":"journal-article","created":{"date-parts":[[2020,7,27]],"date-time":"2020-07-27T13:47:36Z","timestamp":1595857656000},"page":"3127-3149","source":"Crossref","is-referenced-by-count":3,"title":["Underwriting Government Debt Auctions: Auction Choice and Information Production"],"prefix":"10.1287","volume":"67","author":[{"ORCID":"https:\/\/2.zoppoz.workers.dev:443\/https\/orcid.org\/0000-0001-9076-4183","authenticated-orcid":false,"given":"Sudip","family":"Gupta","sequence":"first","affiliation":[{"name":"Gabelli School of Business, Fordham University, New York, New York 10023;"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Rangarajan K.","family":"Sundaram","sequence":"additional","affiliation":[{"name":"Stern School of Business, New York University, New York, New York 10012;"}],"role":[{"role":"author","vocabulary":"crossref"}]},{"ORCID":"https:\/\/2.zoppoz.workers.dev:443\/https\/orcid.org\/0000-0003-0227-0509","authenticated-orcid":false,"given":"Suresh","family":"Sundaresan","sequence":"additional","affiliation":[{"name":"Graduate School of Business, Columbia University, New York, New York 10027"}],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"109","reference":[{"key":"B2","doi-asserted-by":"publisher","DOI":"10.1257\/0002828043052330"},{"key":"B34","doi-asserted-by":"publisher","DOI":"10.1093\/restud\/rdu023"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/6.4.733"},{"key":"B4","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2004.00711.x"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1016\/j.jmoneco.2008.12.012"},{"issue":"4","key":"B6","first-page":"3","volume":"16","author":"Chari VV","year":"1992","journal-title":"Federal Reserve Bank Minneapolis Quart. 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