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Vickrey-reserve auctions and an equilibrium equivalence

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  • Sano, Ryuji

Abstract

This paper characterizes the class of combinatorial auctions that have a particular form of Nash equilibrium. We refer to this class as Vickrey-reserve auctions. In such auctions, bidders pay at least their Vickrey–Clarke–Groves payments. A specific strategy profile studied by Bernheim and Whinston [Bernheim, B.D., Whinston, M., 1986. Menu auctions, resource allocation and economic influence. Quarterly Journal of Economics 101, 1–31] is a Nash equilibrium of every Vickrey-reserve auction even in the presence of complementarities, and it implements an outcome in the bidder-optimal core.

Suggested Citation

  • Sano, Ryuji, 2013. "Vickrey-reserve auctions and an equilibrium equivalence," Mathematical Social Sciences, Elsevier, vol. 65(2), pages 112-117.
    • Handle: RePEc:eee:matsoc:v:65:y:2013:i:2:p:112-117
    DOI: 10.1016/j.mathsocsci.2012.10.005
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    Cited by:

    1. Chen, Ning & Ghosh, Arpita & Lambert, Nicolas S., 2014. "Auctions for social lending: A theoretical analysis," Games and Economic Behavior, Elsevier, vol. 86(C), pages 367-391.

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