Advanced Search
MyIDEAS: Login

Evolutionary Stability of First Price Auctions

Contents:

Author Info

  • Fernando Louge

    (Institute of Mathematical Economics, Bielefeld University)

  • Frank Riedel

    () (Institute of Mathematical Economics, Bielefeld University)

Abstract

This paper studies the evolutionary stability of the unique Nash equilibrium of a first price sealed bid auction. It is shown that the Nash equilibrium is not asymptotically stable under payoff monotonic dynamics for arbitrary initial popu- lations. In contrast, when the initial population includes a continuum of strategies around the equilibrium, the replicator dynamic does converge to the Nash equilibrium. Simulations are presented for the replicator and Brown-von Neumann-Nash dynamics. They suggest that the convergence for the replicator dynamic is slow compared to the Brown-von Neumann-Nash dynamics.

Download Info

If 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.
File URL: http://www.imw.uni-bielefeld.de/papers/files/imw-wp-435.pdf
File Function: First version, 2010
Download Restriction: no

Bibliographic Info

Paper provided by Bielefeld University, Center for Mathematical Economics in its series Working Papers with number 435.

as in new window
Length: 14 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:bie:wpaper:435

Contact details of provider:
Postal: Postfach 10 01 31, 33501 Bielefeld
Phone: 0521/106-3821
Web page: http://www.imw.uni-bielefeld.de/
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Hon-Snir, Shlomit & Monderer, Dov & Sela, Aner, 1998. "A Learning Approach to Auctions," Journal of Economic Theory, Elsevier, vol. 82(1), pages 65-88, September.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bie:wpaper:435

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Frederik Herzberg).

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.