Incentives in core-selecting auctions with single-minded bidders
This paper considers some package auctions with known single-minded bidders. A single-minded bidder is interested in a unique bundle of goods and bids only for that bundle. We examine each bidder's incentive in Ausubel and Milgrom's (2002) ascending proxy auction and every bidder-optimal core-selecting auction. We provide a simple condition for each bidder to report his valuation truthfully, which can be expressed in a single sentence--any "rival" of my "rivals" is my "rival." The Vickrey outcome lies in the core if and only if this condition holds for every bidder; however, it is rarely satisfied.
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- MISHRA, Debasis & PARKES, David C., 2005.
"Ascending price Vickrey auctions for general valuations,"
CORE Discussion Papers
2005052, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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02004, Stanford University, Department of Economics.
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- Bikhchandani, Sushil & Ostroy, Joseph M., 2002. "The Package Assignment Model," Journal of Economic Theory, Elsevier, vol. 107(2), pages 377-406, December.
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