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Properties of Equilibrium Strategies in Multiple-Unit, Uniform-Price Auctions

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  • Michal Bresky

Abstract

The paper analyzes the essential properties of bidder equilibrium strategies in the multi-unit uniform-price auction. In the auction the seller offers several identical units for sale, specifies a minimum accepted bid (reservation price) and sets maximum number of bids that any bidder can submit. Under these restrictions bidders use strictly increasing strategies in a symmetric equilibrium more often, and in many cases the reservation price increases the bidder's strategy which is typical in single-unit auctions. Such an auction procedure implies a unique equilibrium strategy in some cases. Thus the number of bid restriction and reservation price present in real-life multi-unit auctions restore some properties of equilibrium strategies typical for single-unit auctions.

Suggested Citation

  • Michal Bresky, 2008. "Properties of Equilibrium Strategies in Multiple-Unit, Uniform-Price Auctions," CERGE-EI Working Papers wp354, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp354
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    File URL: http://www.cerge-ei.cz/pdf/wp/Wp354.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bresky, Michal, 2013. "Revenue and efficiency in multi-unit uniform-price auctions," Games and Economic Behavior, Elsevier, vol. 82(C), pages 205-217.
    2. Michal Bresky, 2008. "Pure Equilibrium Strategies in Multi-unit Auctions with Private Value Bidders," CERGE-EI Working Papers wp376, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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    More about this item

    Keywords

    Multi-unit auction; uniqueness of equilibrium in discontinuous games; uniform-price auction with reservation price.;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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