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Bayesian-Nash equilibria for fuzzy value auctions

Author

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  • Alexey S. Shvedov

    (Department of Applied Economics, National Research University Higher School of Economics, 20 Myasnitskaya ulitsa, Moscow, 101000, Russia)

Abstract

This paper analyses a model of private value auctions with symmetric risk-neutral bidders, where bidders' private values of an indivisible good are fuzzy. The auction is studied as a game with incomplete information. Fuzzy random variables, their quantile functions, and expressions for expectations through quantile functions are used. An explicit expression for the solution is found. Also, expected bidders' payments are studied.

Suggested Citation

  • Alexey S. Shvedov, 2024. "Bayesian-Nash equilibria for fuzzy value auctions," Economic Analysis Letters, Anser Press, vol. 3(2), pages 83-93, June.
    • Handle: RePEc:bba:j00004:v:3:y:2024:i:2:p:83-93:d:315
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    References listed on IDEAS

    as
    1. Plum, M, 1992. "Characterization and Computation of Nash-Equilibria for Auctions with Incomplete Information," International Journal of Game Theory, Springer;Game Theory Society, vol. 20(4), pages 393-418.
    2. Roger B. Myerson, 1981. "Optimal Auction Design," Mathematics of Operations Research, INFORMS, vol. 6(1), pages 58-73, February.
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