This paper considers a general package auction problem and a class of payment rules we refer to as standard. In a “standard” pricing rule, each winner pays at least his “minimum required value” to win. The minimum required value coincides with the payment in the Vickrey auction, and...

This paper characterizes the perfect Bayesian equilibrium in an ascending price package auction. Bidders play history-dependent strategies in an ascending auction, and we show that it leads to serious underbidding. We suppose that there are 2 objects and 3 bidders: 2 local and 1 global bidders....