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Non-existence of equilibria in simultaneous auctions with a common budget-constraint

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  • Gagan Ghosh

Abstract

I analyze an auction environment where two units of an object are sold at two simultaneous, sealed-bid, first-price auctions to bidders who have a one-dimensional type space, where a type represents the value a bidder places on each of the two units. All bidders have an identical budget constraint that binds their ability to spend in the auctions. I show that if the valuation distribution is atom-less then there does not exist any equilibrium in behavioral strategies in this auction game. Copyright Springer-Verlag Berlin Heidelberg 2015

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  • Gagan Ghosh, 2015. "Non-existence of equilibria in simultaneous auctions with a common budget-constraint," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(2), pages 253-274, May.
    • Handle: RePEc:spr:jogath:v:44:y:2015:i:2:p:253-274
    DOI: 10.1007/s00182-014-0428-8
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    References listed on IDEAS

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    Cited by:

    1. Ghosh, Gagan, 2021. "Simultaneous auctions with budgets: Equilibrium existence and characterization," Games and Economic Behavior, Elsevier, vol. 126(C), pages 75-93.

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