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Asymptotic Efficiency for Discriminatory Private Value Auctions

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Author Info
Swinkels, Jeroen M

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Abstract

We consider discriminatory auctions for multiple identical units of a good. Players have private values, possibly for multiple units. None of the usual assumptions about symmetry of players' distributions over values or symmetry of equilibrium play are made. Because of this, equilibria will typically involve inefficient allocations. Equilibria also become very difficult to solve for. Using an approach which does not depend on explicit equilibrium calculations we show that such auctions become arbitrarily close to efficient as the number of players, and possibly the number of objects, grows large, and provide a simple characterization of limit equilibria. Copyright 1999 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 66 (1999)
Issue (Month): 3 (July)
Pages: 509-28
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Handle: RePEc:bla:restud:v:66:y:1999:i:3:p:509-28

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  1. Jackson, Matthew O. & Swinkels, Jeroen M., 1999. "Existence of Equilibrium in Auctions and Discontinuous Bayesian Games: Endogenous and Incentive Compatibility Sharing Rules," Working Papers 1075, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
  2. Diego GarcĂ­a & Branko Urosevic, 2004. "Noise and Aggregation of Information in Large Markets," Economics Working Papers 785, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  3. Jianbo Zhang & Zhentang Zhang, 1999. "Asymptotic Efficiency in Stackelberg Markets with Incomplete Information," CIG Working Papers FS IV 99-07, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG). [Downloadable!]
  4. In-Koo Cho, 2004. "Monotonicity and Rationalizability in Large Uniform Price and Double Auctions," Theory workshop papers 658612000000000076, UCLA Department of Economics. [Downloadable!]
  5. Atakelty Hailu & Sophie Thoyer, 2006. "Multi-unit auction format design," Journal of Economic Interaction and Coordination, Springer, vol. 1(2), pages 129-146, November. [Downloadable!] (restricted)
  6. Christian Ewerhart & Nuno Cassola & Natacha Valla, 2006. "Declining valuations and equilibrium bidding in central bank refinancing operations," Working Paper Series 668, European Central Bank. [Downloadable!]
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  7. Christian Ewerhart & Nuno Cassola & Natacha Valla, 2005. "Equilibrium and inefficiency in fixed rate tenders," Working Paper Series 554, European Central Bank. [Downloadable!]
  8. Jackson, Matthew O. & Kremer, Ilan, 2002. "On the Concentration of Allocations and Comparisons of Auctions in Large Economies," Working Papers 1146, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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  9. Emiel Maasland & Sander Onderstal, 2006. "Going, Going, Gone! A Swift Tour of Auction Theory and its Applications," De Economist, Springer, vol. 154(2), pages 197-249, June. [Downloadable!] (restricted)
    Other versions:
  10. Jackson, Matther O. & Ilan Kremer, 2004. "The Relevance of a Choice of Auction Format in a Competitive Environment," Working Papers 1190, California Institute of Technology, Division of the Humanities and Social Sciences. [Downloadable!]
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