determine the optimal bidding strategies in the presence of an exposure problem. By using simulation methods, firstt, we show …

, which creates an exposure problem for global bidders - when competing aggressively for a package, a global bidder may incur … exposure problem on revenue and efficiency, and compare its performance to that of the benchmark Vickrey-Clarke-Groves (VCG … properties: due to the exposure problem, the SAA may result in non-core outcomes where local bidders obtain items at very low …

Multi-unit auctions are sometimes plagued by the so-called exposure problem. In this paper, we analyze a simple game … called the ‘chopstick auction’ in which bidders are confronted with the exposure problem. We do so both in theory and in a …-price sealed-bid auction in which the exposure problem is not present. In the experiment, however, we find that the chopstick …