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Dominance Solvability of Large k-Price Auctions

Author

Listed:
  • Azrieli Yaron

    (The Ohio State University)

  • Levin Dan

    (The Ohio State University)

Abstract

In an environment of independent private values, we show that k-price auctions (k>2) with a large number of bidders are dominance solvable in two steps. Specifically, if bidders are rational and are certain that their opponents are rational (but without requiring deeper levels of reasoning), then bids converge to true valuations as the economy gets larger. Our model allows for heterogeneity in bidders' attitudes to risk and in the distributions from which valuations are drawn.

Suggested Citation

  • Azrieli Yaron & Levin Dan, 2012. "Dominance Solvability of Large k-Price Auctions," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-11, May.
    • Handle: RePEc:bpj:bejtec:v:12:y:2012:i:1:n:17
    DOI: 10.1515/1935-1704.1880
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    References listed on IDEAS

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    Cited by:

    1. Mathews, Timothy & Schwartz, Jesse A., 2017. "A note on k-price auctions with complete information when mixed strategies are allowed," Economics Letters, Elsevier, vol. 153(C), pages 6-8.

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