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Sequential First-Price Auction with Randomly Arriving Buyers

Author

Listed:
  • Liu Shulin

    (University of International Business and Economics, Beijing, 100029, China)

  • Han Xiaohu

    (Hebei Academy of Governance, Shijiazhuang, 050031, China)

Abstract

In this paper we reanalyze Said’s (2011) work by retaining all his assumptions except that we use the first-price auction to sell differentiated goods to buyers in dynamic markets instead of the second-price auction. We conclude that except for the expression of the equilibrium bidding strategy, all the results for the first-price auction are exactly the same as the corresponding ones for the second-price auction established by Said (2011). This implies that the well-known “revenue equivalence theorem” holds true for Said’s (2011) dynamic model setting.

Suggested Citation

  • Liu Shulin & Han Xiaohu, 2018. "Sequential First-Price Auction with Randomly Arriving Buyers," Journal of Systems Science and Information, De Gruyter, vol. 6(1), pages 29-34, February.
    • Handle: RePEc:bpj:jossai:v:6:y:2018:i:1:p:29-34:n:2
    DOI: 10.21078/JSSI-2018-029-06
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    References listed on IDEAS

    as
    1. Said, Maher, 2011. "Sequential auctions with randomly arriving buyers," Games and Economic Behavior, Elsevier, vol. 73(1), pages 236-243, September.
    2. Satterthwaite, Mark & Shneyerov, Artyom, 2008. "Convergence to perfect competition of a dynamic matching and bargaining market with two-sided incomplete information and exogenous exit rate," Games and Economic Behavior, Elsevier, vol. 63(2), pages 435-467, July.
    3. Asher Wolinsky, 1988. "Dynamic Markets with Competitive Bidding," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(1), pages 71-84.
    4. McAfee, R Preston & McMillan, John, 1987. "Auctions and Bidding," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 699-738, June.
    Full references (including those not matched with items on IDEAS)

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