revenue equivalence theorem

The Revenue Equivalence Theorem states that, under certain conditions, different types of auction formats will generate the same expected revenue for the seller. Specifically, if bidders are risk-neutral, have similar valuations, and their valuations are private and independent, then all standard auction formats (like first-price, second-price, or English auctions) will yield comparable expected outcomes for the seller. This means that, despite differences in how bids are made and winners are determined, the seller's expected earnings remain consistent across these auction styles, assuming these conditions hold true.