Pure strategy equilibria of single and double auctions with interdependent values

• 成果类型: Article
• 署名作者: Araujo, Aloisio; de Castro, Luciano I.
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; Instituto Nacional de Matematica Pura e Aplicada (IMPA); Getulio Vargas Foundation
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2007.10.006
• 发表日期: 2009
• 页码: 25-48
• 关键词: Equilibrium existence in auctions; Pure strategy Nash equilibrium; Monotonic equilibrium; Tie-breaking rule; Positive probability of trade; Market for lemmons; Winners' curse

摘要

We prove the existence of monotonic pure strategy equilibrium for many kinds of asymmetric auctions with n bidders and unitary demands, interdependent values and independent types. The assumptions require monotonicity only in the own bidder's type. The payments can be a function of all bids. Thus, we provide a new equilibrium existence result for asymmetrical double auctions and a small number of bidders. The generality of our setting requires the use of special tie-breaking rules. We present an example of a double auction with interdependent values where all equilibria are trivial, that is, they have zero probability of trade. This is related to Akerlof's market for lemmons example and to the winner's curse, establishing a connection between them. However, we are able to provide sufficient conditions for non-trivial equilibrium existence. (C) 2007 Elsevier Inc. All rights reserved.