Sequential Auctions with Multi-Unit Demands

I study sequential second price auctions with multi-unit demands in a complete information setting, focusing on cases in which payoffs are non-separable as a consequence of decreasing marginal values. At the equilibrium outcome a buyer behaves as a monopsonist with respect to the residual supply, which raises the possibility of inefficiency. Moreover, I construct an equilibrium that exhibits declining prices, a fact that has been empirically observed.