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Asymptotic prices in uniform-price multi-unit auctions

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Author Info
Indranil Chakraborty ()
Richard Engelbrecht-Wiggans ()

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Abstract

This paper considers a uniform-price auction in which each of n symmetric bidders can place, say, M bids. Each bidder has privately known, decreasing marginal values from an arbitrary M -dimensional distribution. We provide a quantile-type description of the asymptotic price that appropriately generalizes the characterization of the unit-demand asymptotic price. Specifically, the limiting price equals the $ (1-\alpha )$ -th quantile of the “average” of the marginal distributions if a fraction $\alpha $ of the demand is met asymptotically. The result also implies that the expected price in the limit as n becomes large depends only on the aggregate of the marginal distributions of each bidder’s marginal values (and not on the correlation between the marginal values). Copyright Springer-Verlag Berlin/Heidelberg 2005

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File URL: http://hdl.handle.net/10.1007/s00199-004-0549-6
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Publisher Info
Article provided by Springer in its journal Economic Theory.

Volume (Year): 26 (2005)
Issue (Month): 4 (November)
Pages: 983-987
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Handle: RePEc:spr:joecth:v:26:y:2005:i:4:p:983-987

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Related research
Keywords: Multi-unit auctions; Uniform price.;

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This page was last updated on 2009-11-25.


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