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On minimal ascending auctions with payment discounts

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  • Lamy, Laurent

Abstract

The literature on ascending combinatorial auctions yields conflicting insights regarding the possibility to implement the Vickrey payoffs for general valuations. We introduce the class of minimal ascending auctions, a class which allows one to disconnect the final payments from the final bids but which prohibits the raising of the price vector of a provisionally winning bidder. We first establish the impossibility of implementing the Vickrey payoffs for general valuations. Second, we propose a minimal ascending auction that yields a bidder-optimal competitive equilibrium thanks to payment discounts.

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  • Lamy, Laurent, 2012. "On minimal ascending auctions with payment discounts," Games and Economic Behavior, Elsevier, vol. 75(2), pages 990-999.
    • Handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:990-999
    DOI: 10.1016/j.geb.2012.02.005
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    1. de Vries, Sven & Schummer, James & Vohra, Rakesh V., 2007. "On ascending Vickrey auctions for heterogeneous objects," Journal of Economic Theory, Elsevier, vol. 132(1), pages 95-118, January.
    2. Rosenthal, Robert W. & Wang, Ruqu, 1996. "Simultaneous Auctions with Synergies and Common Values," Games and Economic Behavior, Elsevier, vol. 17(1), pages 32-55, November.
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    9. Krishna, Vijay & Rosenthal, Robert W., 1996. "Simultaneous Auctions with Synergies," Games and Economic Behavior, Elsevier, vol. 17(1), pages 1-31, November.
    10. Laurent Lamy, 2009. "Ascending auctions: some impossibility results and their resolutions with final price discounts," PSE Working Papers halshs-00575076, HAL.
    11. Robert Day & Paul Milgrom, 2008. "Core-selecting package auctions," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(3), pages 393-407, March.
    12. Mishra, Debasis & Parkes, David C., 2007. "Ascending price Vickrey auctions for general valuations," Journal of Economic Theory, Elsevier, vol. 132(1), pages 335-366, January.
    13. Motty Perry & Philip J. Reny, 2005. "An Efficient Multi-Unit Ascending Auction," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(2), pages 567-592.
    14. Krishna, Vijay, 2003. "Asymmetric English auctions," Journal of Economic Theory, Elsevier, vol. 112(2), pages 261-288, October.
    15. Mishra, Debasis & Parkes, David C., 2009. "Multi-item Vickrey-Dutch auctions," Games and Economic Behavior, Elsevier, vol. 66(1), pages 326-347, May.
    16. Rothkopf, Michael H & Teisberg, Thomas J & Kahn, Edward P, 1990. "Why Are Vickrey Auctions Rare?," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 94-109, February.
    17. Laurent Lamy, 2009. "Ascending auctions: some impossibility results and their resolutions with final price discounts," Working Papers halshs-00575076, HAL.
    18. Claudio Mezzetti, 2004. "Mechanism Design with Interdependent Valuations: Efficiency," Econometrica, Econometric Society, vol. 72(5), pages 1617-1626, September.
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    Cited by:

    1. Ryuji Sano, 2018. "An equilibrium analysis of a core-selecting package auction with reserve prices," Review of Economic Design, Springer;Society for Economic Design, vol. 22(3), pages 101-122, December.
    2. Ryuji Sano, 2015. "Improving Efficiency Using Reserve Prices: An Equilibrium Analysis of Core-Selecting Auctions," KIER Working Papers 926, Kyoto University, Institute of Economic Research.
    3. Baranov, Oleg, 2018. "An efficient ascending auction for private valuations," Journal of Economic Theory, Elsevier, vol. 177(C), pages 495-517.

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    More about this item

    Keywords

    Ascending auctions; Combinatorial auctions; Bidder-optimal competitive equilibrium; Core-selecting auctions; Vickrey payoffs;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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