Pure Strategy Equilibria Of Single And Double Auctions With Interdependent Values
AbstractWe prove the existence of monotonic pure strategy equilibrium for many types of asymmetric auctions with n bidders and unitary demands, interdependent values and independent types. The assumptions require monotonicity only in the own bidder's type. The payments can be a function of all bids. Thus, we provide a new equilibrium existence result for asymmetrical double auctions and a small number of bidders. The generality of our setting requires the use of special tie-breaking rules. We present a reasonable counterexample for interdependent values auctions that shows that sometimes all equilibria are trivial, that is, they have zero probability of trade. Nevertheless, we give sufficient conditions for non-trivial equilibrium existence.
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Bibliographic InfoPaper provided by Universidad Carlos III, Departamento de Economía in its series Economics Working Papers with number we065320.
Date of creation: Aug 2006
Date of revision:
Other versions of this item:
- Araujo, Aloisio & de Castro, Luciano I., 2009. "Pure strategy equilibria of single and double auctions with interdependent values," Games and Economic Behavior, Elsevier, vol. 65(1), pages 25-48, January.
- NEP-ALL-2006-08-19 (All new papers)
- NEP-GTH-2006-08-19 (Game Theory)
- NEP-MIC-2006-08-19 (Microeconomics)
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