Grid Distributions to study single object auctions ∗ ( Preliminary Version . )

This paper proposes a new approach for dealing with general dependence in auctions. The method allows both theoretical and numerical characterization of monotone pure strategy equilibria in first price auctions. Given the close connection between the theoretical and numerical parts, one can draw conjectures from the observation of computer experiments (simulations), which can suggest directions to the development of the theory. This is illustrated by the proof that the set of first price auctions with dependent private values which have monotonic pure strategy equilibrium has zero measure. JEL Classification Numbers: C62, C72, D44, D82.