Reputation in Multi-unit Ascending Auction with Common Values
نویسنده
چکیده
This paper considers a multi-unit ascending auction with two players and common values. A large set of equilibria in this model is not robust to a small reputational perturbation. In particular, if there is a positive probability that there is a type who always demands many units, regardless of price, then the model has a unique equilibrium payo¤ pro le. If this uncertainty is only on one side, then the player who is known to be normal lowers her demand in order to stop the auction immediately at the reserve price. Hence, her possibly committed opponent buys all the units she demands at the lowest possible price. If the reputation is on both sides, then a War of Attrition emerges. Keywords: Multi-unit auction, uniform price, ascending auction, reputation, aggressive bidding. JEL Classi cation: D44
منابع مشابه
An Efficient Ascending Auction
This paper proposes an ascending auction that yields an efficient outcome when the seller is restricted to sell bundles whose elements form a basis of a matroid and agents have interdependent values. This ascending auction generalizes Bikhchandani et al. (2011) who assume agents have independent private values; and Perry and Reny (2005) who study multi-unit good auctions. The key feature of the...
متن کاملAn Efficient Multi-Unit Ascending Auction
We provide an ascending auction that yields an efficient outcome when there are many identical units for sale and bidders have interdependent values and downward-sloping demand. Our ascending auction both extends and generalizes Ausubel’s (2004) and yields the same outcome as Perry and Reny’s (2002) generalization of Vickrey’s (1961) sealed-bid auction. There are two key features of our auction...
متن کاملAn E¢ cient Multi-Unit Ascending Auction
We provide an ascending auction that yields an e¢ cient outcome when there are many identical units for sale and bidders have interdependent values and downward-sloping demand. Our ascending auction both extends and generalizes Ausubels (1997) and yields the same outcome as Perry and Renys (2002) generalization of Vickreys (1961) sealed-bid auction. There are two key features of our auction....
متن کاملOn the Asymptotic Distribution of the Transaction Price in a Clock Model of a Multi-Unit, Oral, Ascending-Price Auction within the Common-Value Paradigm
Using a clock model of a multi-unit, oral, ascending-price auction, within the commonvalue paradigm, we analyse the asymptotic behaviour of the transaction price as the number of bidders gets large. We find that even though the transaction price is determined by a (potentially small) fraction of losing drop-out bids, that price converges in probability to the ex ante unknown, true value. Subseq...
متن کاملLow Price Equilibrium in Multi–Unit Auctions: The GSM Spectrum Auction in Germany1
The second–generation (GSM) spectrum auction in Germany is probably the most clear cut example of a low price outcome in a simultaneous ascending–bid multi–unit auction. The present paper gives an account of the events, describes the auction rules and market conditions, and provides a game theoretic explanation of low price equilibrium in simultaneous, ascending–bid multi–unit auctions. In part...
متن کامل