A Simple Approach to Analyzing Asymmetric First Price Auctions
AbstractIn this paper, we propose a new approach to analyzing asymmetric first price auctions. Specifically, we examine winning probabilities, exploiting the connection between winning probabilities and payoffs known from mechanism design. This circumvents the need to look directly at bidding strategies, which are generally complex. We derive new results, and more easily prove almost all existing results. The approach also sheds light on hitherto unexamined types of asymmetry. Moreover, the method also applies to asymmetric all-pay auctions, where all buyers pay their own bid, and about which little is currently known.
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Bibliographic InfoPaper provided by Brock University, Department of Economics in its series Working Papers with number 0504.
Length: 24 pages
Date of creation: Nov 2005
Date of revision: Nov 2005
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More information through EDIRC
Asymmetric Auctions; First Price Auctions; All-Pay Auctions; Winning Probabilities.;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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