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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- Ausubel Lawrence M & Milgrom Paul R, 2002.
"Ascending Auctions with Package Bidding,"
The B.E. Journal of Theoretical Economics,
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- Laurent Lamy, 2007. "The Ausubel-Milgrom Proxy Auction with Final Discounts," Working Papers 2007-25, Center for Research in Economics and Statistics. Full references (including those not matched with items on IDEAS)