On the Numerical Solution of Equilibria in Auction Models with Asymmetries within the Private-Values Paradigm
AbstractWe describe and compare numerical methods used to approximate equilibrium bid functions in models of auctions as games of incomplete information. In such games, private values are modelled as draws from bidder-specific type distributions and pay-your-bid rules are used to determine transactions prices. We provide a formal comparison of the performance of these numerical methods (based on speed and accuracy) and suggest ways in which they can be improved and extended as well as applied to new settings.
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Bibliographic InfoPaper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 291.
Length: 111 pages
Date of creation: 2012
Date of revision:
first-price auctions; asymmetric auctions; private-values model; numerical solutions.;
Find related papers by JEL classification:
- C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
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