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Simple Bayesian and Ex-Post Equilibria in Combinatorial Auctions

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  • Ott, Marion

Abstract

This paper derives Bayesian equilibria under general conditions for a broad family of sealed-bid combinatorial auction formats under incomplete information. Equilibria are constructed by linking an equilibrium of the combinatorial auction format to an equilibrium of its single-unit version, thereby providing a closed-form expression if the single-unit version has one. Auction formats that share the same single-unit version, like the Vickrey auction and all bidder-optimal core-selecting auctions, have common equilibria for any number of items and bidders. Furthermore, if an ex-post equilibrium exists in the single-unit version of an auction then the auction format has an ex-post equilibrium in the combinatorial auction. We characterize the ex-post equilibria for a subfamily of auctions.

Suggested Citation

  • Ott, Marion, 2019. "Simple Bayesian and Ex-Post Equilibria in Combinatorial Auctions," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203616, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc19:203616
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    References listed on IDEAS

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    More about this item

    Keywords

    Combinatorial auction; Bayesian equilibrium; equilibrium existence; ex-post equilibrium;
    All these keywords.

    JEL classification:

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

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