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Multi-stage Double Auctions With Many Bidders

Author

Listed:
  • Rittwik Chatterjee

    (National Institute of Science, Technology and Development Studies)

Abstract

Traditionally in a Double Auction (also known as Bilateral Trade) a seller and a buyer interact to sell an object. Earlier literature had shown that in such a situation no mechanism will guarantee efficiency, incentive compatibility, individual rationality, and balanced budget condition. In this note we will argue that if we “sufficiently” increase the number of buyers then there is a two stage mechanism which satisfies all the four conditions stated above.

Suggested Citation

  • Rittwik Chatterjee, 2011. "Multi-stage Double Auctions With Many Bidders," Economics Bulletin, AccessEcon, vol. 31(2), pages 1902-1909.
    • Handle: RePEc:ebl:ecbull:eb-11-00200
    as

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    References listed on IDEAS

    as
    1. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071.
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    More about this item

    Keywords

    Bidding Strategies; Double Auctions;

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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