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Rationalizable outcomes of large private-value first-price discrete auctions

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  • Dekel, Eddie
  • Wolinsky, Asher

Abstract

We consider discrete versions of independent, private-value, first-price auctions. We show for any fixed finite set of possible bids, if the number of participants is large enough, then the set of rationalizable bids involves all players bidding the highest bid that is lower than their private value.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Dekel, Eddie & Wolinsky, Asher, 2003. "Rationalizable outcomes of large private-value first-price discrete auctions," Games and Economic Behavior, Elsevier, vol. 43(2), pages 175-188, May.
  • Handle: RePEc:eee:gamebe:v:43:y:2003:i:2:p:175-188
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    References listed on IDEAS

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    1. Pierpaolo Battigalli & Marciano Siniscalchi, "undated". "Rationalizable Bidding in General First-Price Auctions," Working Papers 190, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    2. Kim-Sau Chung & Jeffrey C. Ely, 2000. "Efficient and Dominance Solvable Auctions with Interdependent Valuations," Discussion Papers 1313, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    3. Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-1050, July.
    4. Battigalli, P., 1999. "Rationalizability in Incomplete Information Games," Economics Working Papers eco99/17, European University Institute.
    5. Guesnerie, Roger, 1992. "An Exploration of the Eductive Justifications of the Rational-Expectations Hypothesis," American Economic Review, American Economic Association, vol. 82(5), pages 1254-1278, December.
    6. Battigalli, Pierpaolo & Siniscalchi, Marciano, 2003. "Rationalizable bidding in first-price auctions," Games and Economic Behavior, Elsevier, vol. 45(1), pages 38-72, October.
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    Citations

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    Cited by:

    1. Shimoji, Makoto & Schweinzer, Paul, 2015. "Implementation without incentive compatibility: Two stories with partially informed planners," Games and Economic Behavior, Elsevier, vol. 91(C), pages 258-267.
    2. Battigalli Pierpaolo & Siniscalchi Marciano, 2003. "Rationalization and Incomplete Information," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-46, June.
    3. Azrieli, Yaron & Levin, Dan, 2011. "Dominance-solvable common-value large auctions," Games and Economic Behavior, Elsevier, vol. 73(2), pages 301-309.
    4. Peters, Michael & Severinov, Sergei, 2006. "Internet auctions with many traders," Journal of Economic Theory, Elsevier, vol. 130(1), pages 220-245, September.
    5. repec:wsi:wschap:9789814374590_0009 is not listed on IDEAS
    6. Hanming Fang & Stephen Morris, 2012. "Multidimensional Private Value Auctions," World Scientific Book Chapters,in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 9, pages 319-356 World Scientific Publishing Co. Pte. Ltd..
    7. repec:wsi:igtrxx:v:08:y:2006:i:01:n:s0219198906000795 is not listed on IDEAS
    8. Dirk Bergemann & Benjamin Brooks & Stephen Morris, 2013. "Extremal Information Structures in the First Price Auction," Working Papers 055-2013, Princeton University, Department of Economics, Econometric Research Program..
    9. Backus, Matthew R. & Podwol, Joseph Uri & Schneider, Henry S., 2014. "Search costs and equilibrium price dispersion in auction markets," European Economic Review, Elsevier, vol. 71(C), pages 173-192.
    10. In-Koo Cho, 2004. "Monotonicity and Rationalizability in Large Uniform Price and Double Auctions," Theory workshop papers 658612000000000076, UCLA Department of Economics.
    11. Azrieli Yaron & Levin Dan, 2012. "Dominance Solvability of Large k-Price Auctions," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-11, May.
    12. Lavi, Ron & Nisan, Noam, 2015. "Online ascending auctions for gradually expiring items," Journal of Economic Theory, Elsevier, vol. 156(C), pages 45-76.
    13. Jack Robles & Makoto Shimoji, "undated". "On Rationalizable Outcomes in Private-Value First-Price Discrete Auctions," Discussion Papers 09/21, Department of Economics, University of York.
    14. Pierpaolo Battigalli, 2006. "Rationalization In Signaling Games: Theory And Applications," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 67-93.
    15. Harry J. Paarsch & Jacques Robert, 2003. "Testing Equilibrium Behaviour At First-Price, Sealed-Bid Auctions With Discrete Bid Increments," CIRANO Working Papers 2003s-32, CIRANO.
    16. Pierpaolo Battigalli & Marciano Siniscalchi, "undated". "Rationalizable Bidding in General First-Price Auctions," Working Papers 190, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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