Properties of Equilibrium Strategies in Multiple-Unit, Uniform-Price Auctions
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.
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- Indranil Chakraborty & Richard Engelbrecht-Wiggans, 2005. "Asymptotic prices in uniform-price multi-unit auctions," Economic Theory, Springer, vol. 26(4), pages 983-987, November.
- McAfee, R Preston & McMillan, John, 1987. "Auctions and Bidding," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 699-738, June.
- repec:ner:tilbur:urn:nbn:nl:ui:12-381122 is not listed on IDEAS
- Palfrey, Thomas R, 1983. "Bundling Decisions by a Multiproduct Monopolist with Incomplete Information," Econometrica, Econometric Society, vol. 51(2), pages 463-83, March.
- Draaisma, Teun & Noussair, Charles, 1997. "Optimal bidding in a uniform price auction with multi-unit demand1," Economics Letters, Elsevier, vol. 56(2), pages 157-162, October.
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