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Existence of Equilibria in Auctions with Interdependent Values: Two Symmetric Bidders

Author

Listed:
  • Govindan, Srihari
  • Wilson, Robert

    (Stanford University)

Abstract

For two symmetric bidders, weak monotonicity conditions are shown to imply existence of an equilibrium in mixed behavioral strategies for a sealed-bid first-price auction of an item for which each bidder's value depends on every bidder's observed signal. Such an equilibrium has atomless distributions of bids and thus is unaffected by how tied bids are resolved.

Suggested Citation

  • Govindan, Srihari & Wilson, Robert, 2010. "Existence of Equilibria in Auctions with Interdependent Values: Two Symmetric Bidders," Research Papers 2057, Stanford University, Graduate School of Business.
    • Handle: RePEc:ecl:stabus:2057
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    File URL: http://gsbapps.stanford.edu/researchpapers/library/RP2057.pdf
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    References listed on IDEAS

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    1. Matthew O. Jackson & Leo K. Simon & Jeroen M. Swinkels & William R. Zame, 2004. "Corrigendum to "Communication and Equilibrium in Discontinuous Games of Incomplete Information"," Econometrica, Econometric Society, vol. 72(6), pages 1927-1929, November.
    2. Govindan, Srihari & Wilson, Robert, 2010. "Existence of Equilibria in Auctions with Private Values," Research Papers 2056, Stanford University, Graduate School of Business.
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    Cited by:

    1. Govindan, Srihari & Wilson, Robert, 2010. "Existence of Equilibria in All-Pay Auctions," Research Papers 2058, Stanford University, Graduate School of Business.
    2. Dutra, Renato Cabral Dias & Carpio, Lucio Guido Tapia, 2021. "Biodiesel auctions in Brazil: Symmetry of bids and informational paradigm," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    3. Olszewski, Wojciech & Siegel, Ron, 2023. "Equilibrium existence in games with ties," Theoretical Economics, Econometric Society, vol. 18(2), May.

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