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An Ascending Auction for Interdependent Values: Uniqueness and Robustness to Strategic Uncertainty

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  • Stephen Morris
  • Dirk Bergemann

Abstract

The important role of dynamic auctions, in particular ascending price auctions, for the revelation of private information has been recognized for a long time. The advantage of sequential procedures is the ability to reveal and communicate private information in the course of the mechanism. The revelation of private information can decrease the uncertainty faced by the bidders and ultimately improve the final allocation offered by the mechanism. In auctions, the source of the uncertainty can be payoff uncertainty (about others’ payoff relevant information) or strategic uncertainty (about their bidding strategies)….
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  • Stephen Morris & Dirk Bergemann, 2007. "An Ascending Auction for Interdependent Values: Uniqueness and Robustness to Strategic Uncertainty," American Economic Review, American Economic Association, vol. 97(2), pages 125-130, May.
    • Handle: RePEc:aea:aecrev:v:97:y:2007:i:2:p:125-130
    Note: DOI: 10.1257/aer.97.2.125
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    References listed on IDEAS

    as
    1. Moore, John & Repullo, Rafael, 1988. "Subgame Perfect Implementation," Econometrica, Econometric Society, vol. 56(5), pages 1191-1220, September.
    2. Dirk Bergemann & Stephen Morris, 2006. "Robust Implementation: The Case of Direct Mechanisms"," Cowles Foundation Discussion Papers 1561R, Cowles Foundation for Research in Economics, Yale University, revised May 2007.
    3. Milgrom, Paul R & Weber, Robert J, 1982. "A Theory of Auctions and Competitive Bidding," Econometrica, Econometric Society, vol. 50(5), pages 1089-1122, September.
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    7. Adam Brandenburger & Eddie Dekel, 2014. "Rationalizability and Correlated Equilibria," World Scientific Book Chapters, in: The Language of Game Theory Putting Epistemics into the Mathematics of Games, chapter 3, pages 43-57, World Scientific Publishing Co. Pte. Ltd..
    8. Gale, Douglas, 1995. "Dynamic Coordination Games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(1), pages 1-18, January.
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    Citations

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    Cited by:

    1. Dirk Bergemann & Stephen Morris, 2012. "Robust Implementation in Direct Mechanisms," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 4, pages 153-194, World Scientific Publishing Co. Pte. Ltd..
    2. Dirk Bergemann & Stephen Morris, 2012. "Robust Mechanism Design: An Introduction," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 1, pages 1-48, World Scientific Publishing Co. Pte. Ltd..
    3. Gerard van der Laan & Zaifu Yang, 2016. "An ascending multi-item auction with financially constrained bidders," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 1(1), pages 109-149, December.
    4. Loertscher, Simon & Mezzetti, Claudio, 2021. "A dominant strategy, double clock auction with estimation-based tatonnement," Theoretical Economics, Econometric Society, vol. 16(3), July.
    5. Ning Sun & Zaifu Yang, 2014. "An Efficient and Incentive Compatible Dynamic Auction for Multiple Complements," Journal of Political Economy, University of Chicago Press, vol. 122(2), pages 422-466.
    6. Liu, Tingjun & Bernhardt, Dan, 2024. "Auctioning control and cash-flow rights separately," The Warwick Economics Research Paper Series (TWERPS) 1516, University of Warwick, Department of Economics.
    7. Penta, Antonio, 2015. "Robust dynamic implementation," Journal of Economic Theory, Elsevier, vol. 160(C), pages 280-316.
    8. Catonini, Emiliano & Penta, Antonio, 2022. "Backward Induction Reasoning beyond Backward Induction," TSE Working Papers 22-1298, Toulouse School of Economics (TSE).
    9. Müller, Christoph, 2016. "Robust virtual implementation under common strong belief in rationality," Journal of Economic Theory, Elsevier, vol. 162(C), pages 407-450.
    10. Levent Ulku, 2010. "Monotone Implementation," Working Papers 1004, Centro de Investigacion Economica, ITAM.
    11. Emiliano Catonini & Antonio Penta, 2022. "Backward Induction Reasoning beyond Backward Induction," Working Papers 1315, Barcelona School of Economics.
    12. Zaifu Yang & Jingsheng Yu, 2018. "Efficient Ascending Menu Auctions with Budget Constrained Bidders," Discussion Papers 18/09, Department of Economics, University of York.
    13. Satoru Fujishige & Zaifu Yang, 2020. "A Universal Dynamic Auction for Unimodular Demand Types: An Efficient Auction Design for Various Kinds of Indivisible Commodities," Discussion Papers 20/08, Department of Economics, University of York.
    14. Ülkü, Levent, 2014. "Implementation in an interdependent value framework," Mathematical Social Sciences, Elsevier, vol. 68(C), pages 64-70.
    15. Emiliano Cantonini & Antonio Penta, 2022. "Backward induction reasoning beyond backward induction," Economics Working Papers 1815, Department of Economics and Business, Universitat Pompeu Fabra.

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    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D0 - Microeconomics - - General

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