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Uniform price auction with quantity constraints

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  • Kiho Yoon

Abstract

We study the equilibria of uniform price auctions where bidders have flat demands up to their respective quantity constraints. We present an iterative procedure that systematically finds a Nash equilibrium outcome under semi-complete information as well as a novel ascending auction under incomplete information that has this outcome as a dominant strategy equilibrium. Demand reduction and low price equilibrium may occur since it is sometimes advantageous for a bidder to give up some of his/her demand and get the remaining demand at a low price rather than to get his/her entire demand at a higher price.

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  • Kiho Yoon, 2024. "Uniform price auction with quantity constraints," Papers 2409.04047, arXiv.org.
    • Handle: RePEc:arx:papers:2409.04047
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    References listed on IDEAS

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