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Efficiency and information aggregation in large uniform-price auctions


  • Bodoh-Creed, Aaron


We prove that the equilibria of a large interdependent-value, uniform-price auction model where bidders have arbitrary preferences for multiple units can be approximated by a nonatomic exchange economy. We show that the uniform-price auction is approximately efficient with a large number of participants and asymptotically aggregates idiosyncratic bidder information into the market price. More generally our analysis framework provides conditions justifying the use of nonatomic limit model approximations to analyze the large-market behavior of game-theoretic models. We demonstrate continuity requirements on the economic primitives sufficient for the equilibrium strategies of the two models to converge as the number of participants in the finite game approaches infinity.

Suggested Citation

  • Bodoh-Creed, Aaron, 2013. "Efficiency and information aggregation in large uniform-price auctions," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2436-2466.
  • Handle: RePEc:eee:jetheo:v:148:y:2013:i:6:p:2436-2466 DOI: 10.1016/j.jet.2013.09.012

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    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Vladimir Asriyan, 2017. "Information Aggregation in Dynamic Markets with Adverse Selection," 2017 Meeting Papers 988, Society for Economic Dynamics.
    2. repec:wsi:apjorx:v:34:y:2017:i:06:n:s0217595917500282 is not listed on IDEAS
    3. Vladimir Asriyan & William Fuchs & Brett Green, 2017. "Information Aggregation in Dynamic Markets with Adverse Selection," Working Papers 979, Barcelona Graduate School of Economics.

    More about this item


    Auctions; Information aggregation; Large markets;

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis


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