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Multiplicity of Equilibria in Multi-Unit Demand Sequential Auctions under Complete Information

Author

Listed:
  • Mohamed Jeddy

    (CREATE, Université Laval)

  • Bruno Larue

    (CREATE, U. Laval)

Abstract

We show that the result on the existence of a unique Nash perfect equilibrium in two-bidder multi-unit sequential second-price auctions under complete information (as in Krishna, 1993; Katzman, 1999; and Gale and Stegeman, 2001) is not robust in higher dimensional auctions. Using an example featuring three bidders competing for four objects, we found two equilibria characterized by different vectors of prices and allocations.

Suggested Citation

  • Mohamed Jeddy & Bruno Larue, 2012. "Multiplicity of Equilibria in Multi-Unit Demand Sequential Auctions under Complete Information," Economics Bulletin, AccessEcon, vol. 32(1), pages 456-465.
    • Handle: RePEc:ebl:ecbull:eb-11-00258
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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P42.pdf
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    References listed on IDEAS

    as
    1. Engelbrecht-Wiggans, Richard, 1999. "An example of multi-unit auctions with atypically many equilibria," Economics Letters, Elsevier, vol. 65(1), pages 67-69, October.
    2. repec:ebl:ecbull:v:30:y:2010:i:1:p:429-436 is not listed on IDEAS
    3. Mohamed Jeddy & Bruno Larue & Jean-philippe Gervais, 2010. "Allocations and Price Trends in Sequential Auctions under Complete Information with Symmetric Bidders," Economics Bulletin, AccessEcon, vol. 30(1), pages 429-436.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bruno Larue & Sébastien Pouliot & Mohamed Jeddy, 2016. "On the Number and Heterogeneity of Bidders in Livestock Auctions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(2), pages 289-310, June.
    2. Jeddy, Mohamed & Larue, Bruno, 2012. "Mergers, concurrent marketing mechanisms and the performance of sequential auctions," Working Papers 126945, Structure and Performance of Agriculture and Agri-products Industry (SPAA).

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    More about this item

    Keywords

    sequential auctions; complete information; multiple equilibria;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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