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Pure strategy equilibria of multidimensional and Non-monotonic auctions

  • Moreira, Humberto Ataíde
  • Araújo, Aloísio Pessoa de
  • Castro Filho, Luciano I. de Castro Filho

We give necessary and sufficient conditions for the existence of symmetric equilibrium without ties in common values auctions, with multidimensional independent types and no monotonic assumptions. When the conditions are not satisfied, we are still able to prove the existence of pure strategy equilibrium with an exogenous and explicit tie breaking mechanism. As a basis for these results, we obtain a characterization lemma that is valid under a general setting, that includes non-independent types, asymmetrical utilities and any attitude towards risk. Such characterization gives a basis for an intuitive interpretation for the behavior of the bidder: to bid in order to equalize the marginal benefit and the marginal cost of bidding

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Paper provided by FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil) in its series Economics Working Papers (Ensaios Economicos da EPGE) with number 571.

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Date of creation: 01 Nov 2004
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Handle: RePEc:fgv:epgewp:571
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