Efficiency of Large Private Value Auctions
AbstractWe consider discriminatory and uniform price auctions for multiple identical units of a good. Players have private values, possibly asymmetrically distributed and for multiple units. Our setting allows for aggregate uncertainty about demand and supply. In this setting, equilibria generally will be inefficient. Despite this, we show that such auctions become arbitrarily close to efficient if they are "large," and use this to derive an asymptotic characterization of revenue and bidding behavior.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Econometric Society in its journal Econometrica.
Volume (Year): 69 (2001)
Issue (Month): 1 (January)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Martin W. Cripps & Jeroen M. Swinkels, 2006.
"Efficiency of Large Double Auctions,"
Econometric Society, vol. 74(1), pages 47-92, 01.
- Bulut, Harun & Koray, Semih, 2008. "Competition and Regulation Via Supply and Demand Functions in Oligopolistic-Oligopsonistic Markets," Staff General Research Papers 12930, Iowa State University, Department of Economics.
- Gábor Virág, 2013.
"First-price auctions with resale: the case of many bidders,"
Springer, vol. 52(1), pages 129-163, January.
- Virag, Gabor, 2009. "First-price auctions with resale: the case of many bidders," MPRA Paper 17094, University Library of Munich, Germany.
- Brett E Katzman, 2009. "Asymptotic properties of equilibrium in discriminatory and uniform price ipv multi-unit auctions," Economics Bulletin, AccessEcon, vol. 29(2), pages 834-846.
- García, Diego & Urošević, Branko, 2013. "Noise and aggregation of information in large markets," Journal of Financial Markets, Elsevier, vol. 16(3), pages 526-549.
- Chakraborty, Indranil & Shyamalkumar, Nariankadu D., 2014. "Revenue and efficiency ranking in large multi-unit and bundle auctions," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 12-21.
- Bresky, Michal, 2013.
"Revenue and efficiency in multi-unit uniform-price auctions,"
Games and Economic Behavior,
Elsevier, vol. 82(C), pages 205-217.
- Michal Bresky, 2009. "Revenue and Efficiency in Multi-Unit Uniform-Price Auctions," CERGE-EI Working Papers wp384, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Bodoh-Creed, Aaron, 2013. "Efficiency and information aggregation in large uniform-price auctions," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2436-2466.
- Back, Kerry & Zender, Jaime F., 2001. "Auctions of divisible goods with endogenous supply," Economics Letters, Elsevier, vol. 73(1), pages 29-34, October.
- In-Koo Cho, 2004. "Monotonicity and Rationalizability in Large Uniform Price and Double Auctions," Theory workshop papers 658612000000000076, UCLA Department of Economics.
- Al-Najjar, Nabil I. & Smorodinsky, Rann, 2007. "The efficiency of competitive mechanisms under private information," Journal of Economic Theory, Elsevier, vol. 137(1), pages 383-403, November.
- Ewerhart, Christian & Cassola, Nuno & Valla, Natacha, 2006.
"Declining valuations and equilibrium bidding in central bank refinancing operations,"
Working Paper Series
0668, European Central Bank.
- Ewerhart, Christian & Cassola, Nuno & Valla, Natacha, 2010. "Declining valuations and equilibrium bidding in central bank refinancing operations," International Journal of Industrial Organization, Elsevier, vol. 28(1), pages 30-43, January.
- Christian Ewerhart & Nuno Cassola & Natacha Valla, 2007. "Declining Valuations And Equilibrium Bidding In Central Bank Refinancing Operations," Swiss Finance Institute Research Paper Series 07-22, Swiss Finance Institute.
- Athey, Susan & Miller, David A., 2007.
"Efficiency in repeated trade with hidden valuations,"
Econometric Society, vol. 2(3), September.
- Susan Athey & David Miller, 2006. "Efficiency in Repeated Trade with Hidden Valuations," Levine's Bibliography 784828000000000256, UCLA Department of Economics.
- Cassola, N. & Ewerhart , C. & Valla, N., 2006. "Declining Valuations and Equilibrium Bidding Central Bank Refinancing Operations," Working papers 151, Banque de France.
- Gadi Fibich & Arieh Gavious, 2010. "Large auctions with risk-averse bidders," International Journal of Game Theory, Springer, vol. 39(3), pages 359-390, July.
- Fuhito Kojima & Parag A. Pathak, 2009. "Incentives and Stability in Large Two-Sided Matching Markets," American Economic Review, American Economic Association, vol. 99(3), pages 608-27, June.
- Gresik, Thomas A., 2001. "Rationing rules and European Central Bank auctions," Journal of International Money and Finance, Elsevier, vol. 20(6), pages 793-808, November.
- Schummer, James, 2004. "Almost-dominant strategy implementation: exchange economies," Games and Economic Behavior, Elsevier, vol. 48(1), pages 154-170, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.