We prove the existence of an increasing equilibrium, and study the comparative statics of correlation in the k-double auction with affiliated private values. This is supposedly the simplest bilateral trading mechanism that allows for dependence in valuations between buyers and sellers. In the...

We present sufficient conditions for the existence of an increasing equilibrium in the two player k-double auction with affiliated private values. In the case k ∈ {0, 1} there exists a unique equilibrium in non-dominated strategies. Applying this equilibrium, we provide a detailed example...