Existence of Equilibrium in Single and Double Private Value Auctions
We show existence of equilibria in istributional strategies for a wide class of private value auctions, including the first general existence result for double auctions. The set of quilibria is invariant to the tie-breaking rule. The model incorporates multiple unit demands, all standard pricing rules, reserve prices, entry costs, and stochastic demand and supply. Valuations can be correlated and asymmetrically distributed. For double auctions, we show further that at least one equilibrium involves a positive volume of trade. The existence proof establishes new connections among existence techniques for discontinuous Bayesian games.
|Date of creation:||Mar 2004|
|Date of revision:|
|Publication status:||Forthcoming: Econometrica|
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|Order Information:|| Postal: Working Paper Assistant, Division of the Humanities and Social Sciences, 228-77, Caltech, Pasadena CA 91125|
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