On some collusive and signaling equilibria in ascending auctions for multiple objects
AbstractWe consider two ascending auctions for multiple objects: the SEAMO (simultaneous English auction for multiple objects) and the the JAMO (Japanese auction for multiple objects). We first derive a (competitive) Perfect Bayesian Equilibrium of the JAMO by exploiting the strategic equivalence between the JAMO and the Survival Auction which consists of a finite sequence of sealed-bid auctions. Then, we prove that many of the (unwanted) collusive or signaling equilibria studied in the literature in the framework of the SEAMO do not have a counterpart in the JAMO. However, it is shown that certain collusive equilibria based on retaliatory strategies do exist in both auctions.
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 765.
Length: 28 pages
Date of creation: 01 Sep 2002
Date of revision:
Multi-unit auctions; Ascending auctions; FCC auctions; Collusion; Retaliation;
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
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