Properties of Equilibrium Strategies in Multiple-Unit, Uniform-Price Auctions
AbstractThe paper analyzes the essential properties of bidder equilibrium strategies in the multi-unit uniform-price auction. In the auction the seller offers several identical units for sale, specifies a minimum accepted bid (reservation price) and sets maximum number of bids that any bidder can submit. Under these restrictions bidders use strictly increasing strategies in a symmetric equilibrium more often, and in many cases the reservation price increases the bidder's strategy which is typical in single-unit auctions. Such an auction procedure implies a unique equilibrium strategy in some cases. Thus the number of bid restriction and reservation price present in real-life multi-unit auctions restore some properties of equilibrium strategies typical for single-unit auctions.
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Bibliographic InfoPaper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp354.
Date of creation: May 2008
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Multi-unit auction; uniqueness of equilibrium in discontinuous games; uniform-price auction with reservation price.;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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- Palfrey, Thomas R, 1983. "Bundling Decisions by a Multiproduct Monopolist with Incomplete Information," Econometrica, Econometric Society, vol. 51(2), pages 463-83, March.
- Draaisma, Teun & Noussair, Charles, 1997. "Optimal bidding in a uniform price auction with multi-unit demand1," Economics Letters, Elsevier, vol. 56(2), pages 157-162, October.
- Noussair, C.N., 1995.
"Equilibria in a multi-object uniform price sealed bid auction with multi-unit demands,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-381122, Tilburg University.
- Noussair, Charles, 1995. "Equilibria in a Multi-object Uniform Price Sealed Bid Auction with Multi-unit Demands," Economic Theory, Springer, vol. 5(2), pages 337-51, March.
- Indranil Chakraborty & Richard Engelbrecht-Wiggans, 2005. "Asymptotic prices in uniform-price multi-unit auctions," Economic Theory, Springer, vol. 26(4), pages 983-987, November.
- McAfee, R Preston & McMillan, John, 1987. "Auctions and Bidding," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 699-738, June.
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