Bertrand-Edgeworth Auction with Multiple Asymmetric Bidders : The Case with Demand Elasticity

In this technical note, we provide a complete proof of a theorem about the equilibrium structure in a Bertrand-Edgeworth Auction with demand elasticity. It is a companion to our full paper in B-E Auction (Hu, et al, 2010). The analysis in this note largely repeats the analysis in the original paper and is therefore not included there. As there are still sufficient differences with the original case without demand elasticity, we provide it here as an independent document for reader's convenience