Equilibrium of a sequence of auctions when bidders demand multiple items

We construct an ex post perfect equilibrium in a sequence of second-price auctions with two bidders where each bidder's marginal values for additional units are decreasing. This equilibrium implies an increasing path of transaction prices and is ex post efficient.

MoreLess

Year of publication:	2011
Authors:	Liu, Qingmin
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 112.2011, 2, p. 192-194
Publisher:	Elsevier
Keywords:	Sequential auctions Ex post perfect equilibrium Declining price anomaly

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009146135