Ascending price Vickrey auctions for general valuations
AbstractAscending price auctions typically involve a single price path with buyers paying their final bid price. Using this traditional definition, no ascending price auction can achieve the Vickrey-Clarke-Groves (VCG) outcome for general private valuations in the combinatorial auction setting. We relax this definition by allowing discounts to buyers from the final price of the auction (or alternatively, calculating the discounts dynamically during the auction) while still maintaining a single price path. Using a notion called universal competitive equilibrium prices, shown to be necessary and sufficient to achieve the VCG outcome using ascending price auctions, we define a broad class of ascending price combinatorial auctions in which truthful bidding by buyers is an ex post Nash equilibrium. Any auction in this class achieves the VCG outcome and ex post efficiency for general valuations. We define two specific auctions in this class by generalizing two known auctions in the literature [11, 24].
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 132 (2007)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622869
Other versions of this item:
- MISHRA, Debasis & PARKES, David C., 2005. "Ascending price Vickrey auctions for general valuations," CORE Discussion Papers 2005052, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bikhchandani, Sushil & Ostroy, Joseph M., 2002. "The Package Assignment Model," Journal of Economic Theory, Elsevier, vol. 107(2), pages 377-406, December.
- Ausubel Lawrence M & Milgrom Paul R, 2002.
"Ascending Auctions with Package Bidding,"
The B.E. Journal of Theoretical Economics,
De Gruyter, vol. 1(1), pages 1-44, August.
- Olivier Compte & Philippe Jehiel, 2007.
"Auctions and information acquisition: sealed bid or dynamic formats?,"
RAND Journal of Economics,
RAND Corporation, vol. 38(2), pages 355-372, 06.
- Olivier Compte & Philippe Jehiel, 2005. "Auctions and Information acquisition: Sealed-bid or Dynamic Formats?," Levine's Bibliography 784828000000000495, UCLA Department of Economics.
- Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu & William R. Zame, 2006.
"The Limits of ex post Implementation,"
Econometric Society, vol. 74(3), pages 585-610, 05.
- Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu & William R. Zame, 2005. "The Limits of Ex-Post Implementation," UCLA Economics Working Papers 839, UCLA Department of Economics.
- Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu & William R. Zame, 2005. "The Limits of Ex-Post Implementation," Levine's Bibliography 666156000000000548, UCLA Department of Economics.
- Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
- de Vries, Sven & Schummer, James & Vohra, Rakesh V., 2007.
"On ascending Vickrey auctions for heterogeneous objects,"
Journal of Economic Theory,
Elsevier, vol. 132(1), pages 95-118, January.
- Sven de Vries & James Schummer, 2005. "On Ascending Vickrey Auctions for Heterogeneous Objects," 2005 Meeting Papers 389, Society for Economic Dynamics.
- Lawrence M. Ausubel & Paul Milgrom, 2004.
"Ascending Proxy Auctions,"
03-035, Stanford Institute for Economic Policy Research.
- Cramton, Peter, 1998.
European Economic Review,
Elsevier, vol. 42(3-5), pages 745-756, May.
- Peter Cramton & Yoav Shoham & Richard Steinberg, 2004. "Combinatorial Auctions," Papers of Peter Cramton 04mit, University of Maryland, Department of Economics - Peter Cramton, revised 2004.
- Demange, Gabrielle & Gale, David & Sotomayor, Marilda, 1986. "Multi-Item Auctions," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 863-72, August.
- Green, Jerry & Laffont, Jean-Jacques, 1977. "Characterization of Satisfactory Mechanisms for the Revelation of Preferences for Public Goods," Econometrica, Econometric Society, vol. 45(2), pages 427-38, March.
- S.J. Rassenti & V.L. Smith & R.L. Bulfin, 1982. "A Combinatorial Auction Mechanism for Airport Time Slot Allocation," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 402-417, Autumn.
- Lawrence M. Ausubel, 2004. "An Efficient Ascending-Bid Auction for Multiple Objects," American Economic Review, American Economic Association, vol. 94(5), pages 1452-1475, December.
- Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-31, July.
- William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, 03.
- Gul, Faruk & Stacchetti, Ennio, 2000. "The English Auction with Differentiated Commodities," Journal of Economic Theory, Elsevier, vol. 92(1), pages 66-95, May.
- Leonard, Herman B, 1983. "Elicitation of Honest Preferences for the Assignment of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 461-79, June.
- Bikhchandani, Sushil & Ostroy, Joseph M., 2006. "Ascending price Vickrey auctions," Games and Economic Behavior, Elsevier, vol. 55(2), pages 215-241, May.
- Mochon, A. & Saez, Y. & Gomez-Barroso, J.L. & Isasi, P., 2012. "Exploring pricing rules in combinatorial sealed-bid auctions," Journal of Economic Behavior & Organization, Elsevier, vol. 82(2), pages 462-478.
- Hitoshi Matsushima, 2011.
"Price-Based Combinatorial Auction: Connectedness and Representative Valuations,"
CIRJE-F-806, CIRJE, Faculty of Economics, University of Tokyo.
- Hitoshi Matsushima, 2011. "Price-Based Combinatorial Auction: Connectedness and Representative Valuations," CARF F-Series CARF-F-261, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
- Shuhei Morimoto & Shigehiro Serizawa, 2012.
"Strategy-proofness and Efficiency with Nonquasi-linear Preferences: A Characterization of Minimum Price Walrasian Rule,"
ISER Discussion Paper
0852, Institute of Social and Economic Research, Osaka University.
- Serizawa, Shigehiro & Morimoto, Shuhei, 0. "Strategy-proofness and efficiency with non-quasi-linear preferences: a characterization of minimum price Walrasian rule," Theoretical Economics, Econometric Society.
- Andersson, Tommy & Erlanson, Albin, 2012.
"Multi-Item Vickery-English-Dutch Auctions,"
2012:17, Lund University, Department of Economics, revised 15 Jan 2013.
- Laurent Lamy, 2007. "Contingent Auctions with Allocative Externalities: Vickrey vs. the Ausubel-Milgrom Proxy Auction," 2007 Meeting Papers 427, Society for Economic Dynamics.
- repec:hal:wpaper:halshs-00575076 is not listed on IDEAS
- Laurent Lamy, 2009. "Ascending auctions: some impossibility results and their resolutions with final price discounts," PSE Working Papers halshs-00575076, HAL.
- Hitoshi Matsushima, 2010. "Auctioneer's Discretion in Combinatorial Auctions," CARF F-Series CARF-F-293, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo, revised Sep 2012.
- Liad Blumrosen & Noam Nisan, 2005. "On the Computational Power of Iterative Auctions II: Ascending Auctions," Discussion Paper Series dp382, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- Christer Andersson & Ola Andersson & Tommy Andersson, 2013. "Sealed bid auctions versus ascending bid auctions: an experimental study," Review of Economic Design, Springer, vol. 17(1), pages 1-16, March.
- Lavi, Ron & Oren, Sigal, 2012. "Side-communication yields efficiency of ascending auctions: The two-items case," Games and Economic Behavior, Elsevier, vol. 76(2), pages 439-456.
- Andersson, Tommy & Andersson, Christer & Andersson, Ola, 2010.
"Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study,"
2010:17, Lund University, Department of Economics.
- Andersson, Christer & Andersson, Ola & Andersson, Tommy, 2011. "Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study," Working Paper Series 882, Research Institute of Industrial Economics.
- Akiyoshi Shioura & Zaifu Yang, 2013. "Equilibrium, Auction, Multiple Substitutes and Complements," Discussion Papers 13/17, Department of Economics, University of York.
- Sano, Ryuji, 2011. "Incentives in core-selecting auctions with single-minded bidders," Games and Economic Behavior, Elsevier, vol. 72(2), pages 602-606, June.
- Lamy, Laurent, 2012. "On minimal ascending auctions with payment discounts," Games and Economic Behavior, Elsevier, vol. 75(2), pages 990-999.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.