Recently, some literature on incomplete contracts studies the cases where renegotiations take place inefficiently. We extend the incomplete contract model in Hart (2009) by assuming that one party chooses an action which affects renegotiation costs. In our model, renegotiation costs are...

This paper investigates the perfect Bayesian equilibrium in an ascending-price core-selecting auction, which is recently used in some countriesʼ spectrum license auctions. We suppose that there are two identical items, two small bidders, and one large bidder. The small bidders demand only one...

This paper considers some package auctions with known single-minded bidders. A single-minded bidder is interested in a unique bundle of goods and bids only for that bundle. We examine each bidder's incentive in Ausubel and Milgrom's (2002) ascending proxy auction and every bidder-optimal...

This paper characterizes the class of combinatorial auctions that have a particular form of Nash equilibrium. We refer to this class as Vickrey-reserve auctions. In such auctions, bidders pay at least their Vickrey–Clarke–Groves payments. A specific strategy profile studied by Bernheim and...