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Side-communication yields efficiency of ascending auctions: The two-items case

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  • Lavi, Ron
  • Oren, Sigal
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    Abstract

    We analyze a simultaneous ascending auction with anonymous item prices, for two items that are substitutes. This popular format entails increased opportunities for coordination among bidders, since bids are observable and can be used as signaling. This has happened, e.g., in the Netherlands 3G Telecom Auction and in the FCC auctions.

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    Bibliographic Info

    Article provided by Elsevier in its journal Games and Economic Behavior.

    Volume (Year): 76 (2012)
    Issue (Month): 2 ()
    Pages: 439-456

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    Handle: RePEc:eee:gamebe:v:76:y:2012:i:2:p:439-456

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    Web page: http://www.elsevier.com/locate/inca/622836

    Related research

    Keywords: Simultaneous ascending auctions; Myopic bidding; Signaling; Ex-post efficiency;

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