Simultaneous auctions of identical items by first-price close mechanism with a bonus for buyers
DOI:
https://doi.org/10.18381/eq.v19i2.7270Keywords:
simultaneous auctions, first-price sealed mechanism, bayesian games, symmetric bayesian Nash equilibrium, seller's expected revenueAbstract
Objective: In this paper we study, from the seller’s perspective, how to auction a finite set of identical items when the buyer who obtains the whole set of goods (if any) gets a bonus, such that the seller maximizes his expected revenue and taking into account the strategic behavior of the bidders. Methodology: We use Bayesian Games for modelling the situation considering a strategy space equal to R+m for each bidder. Results: We show a Symmetric Bayesian Equilibrium for the model as well as the seller’s indifference between several natural ways for offering the bonus to a bidder getting the whole set of items, because he obtains the same expected revenue. Limitations: The model regards only identical items. Originality: We show an equilibrium bid for a n-personal model of m Simultaneous Auctions under first-price close mechanism considering that there is a kind of extra profit. Conclusions: The seller is indifferent between several ways to offer the bonus. It could be interesting to contrast the theoretical results under an experimental framework.Downloads
References
Harsanyi, J. C. (1967). Games with incomplete information played by “Bayesian” players, I–III Part I. the basic model. Management Science, 14(3), 159–182. https://doi.org/10.1287/mnsc.14.3.159
Krishna, V. (2009). Auction Theory (2nd ed.). Academic Press.
Krishna, V., & Rosenthal, R. W. (1996). Simultaneous auctions with synergies. Games and Economic Behavior, 17(1), 1–31. https://doi.org/10.1006/game.1996.0092
Milgrom, P. R., & Weber, R. J. (1982). A theory of auctions and competitive bidding. Econometrica: Journal of the Econometric Society, 50(5), 1089. https://doi.org/10.2307/1911865
Morgenstern, O., Tucker, A., & Vickrey, W. (1962). Auctions and bidding games. In Recent advances in game theory. Princeton University Press.
Rosenthal, R. W., & Wang, R. (1996). Simultaneous auctions with synergies and common values. Games and Economic Behavior, 17(1), 32–55. https://doi.org/10.1006/game.1996.0093
Szentes, B., & Rosenthal, R. W. (2003). Three-object two-bidder simultaneous auctions: chopsticks and tetrahedra. Games and Economic Behavior, 44(1), 114–133. https://doi.org/10.1016/s0899-8256(02)00530-4
Downloads
Published
How to Cite
Issue
Section
License
Los autores ceden a EconoQuantum, Revista de Economía y Finanzas, los derechos de publicación y difusión de su trabajo titulado “_________________________________________”, tanto en medios impresos como digitales.
