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Qualitative analysis of Bayes-Nash equilibrium in weak asymmetric auctions

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  • Momparler, Juan
  • Gregori, Pablo

Abstract

We propose a simple qualitative methodology for improving the understanding of the nature of equilibrium strategies in asymmetric first-price sealed-bid auctions when departures from symmetry are weak. We exemplify this methodology through the exposition of three examples already studied in literature (Maskin and Riley, 2000a; Fibich and Gavious, 2003; Bajari, 2001).

Suggested Citation

  • Momparler, Juan & Gregori, Pablo, 2011. "Qualitative analysis of Bayes-Nash equilibrium in weak asymmetric auctions," Economics Letters, Elsevier, vol. 110(3), pages 220-222, March.
    • Handle: RePEc:eee:ecolet:v:110:y:2011:i:3:p:220-222
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    References listed on IDEAS

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    1. Patrick Bajari, 2001. "Comparing competition and collusion: a numerical approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 18(1), pages 187-205.
    2. Eric Maskin & John Riley, 2000. "Equilibrium in Sealed High Bid Auctions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(3), pages 439-454.
    3. Maskin, Eric & Riley, John, 2003. "Uniqueness of equilibrium in sealed high-bid auctions," Games and Economic Behavior, Elsevier, vol. 45(2), pages 395-409, November.
    4. Jacob Rubinstein & Elmar Wolfstetter & Michael Landsberger & Shmuel Zamir, 2001. "First-price auctions when the ranking of valuations is common knowledge," Review of Economic Design, Springer;Society for Economic Design, vol. 6(3), pages 461-480.
    5. Eric Maskin & John Riley, 2000. "Asymmetric Auctions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(3), pages 413-438.
    6. Lebrun, Bernard, 2006. "Uniqueness of the equilibrium in first-price auctions," Games and Economic Behavior, Elsevier, vol. 55(1), pages 131-151, April.
    7. Harry J. Paarsch & Han Hong, 2006. "An Introduction to the Structural Econometrics of Auction Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262162350, April.
    8. Lebrun, Bernard, 1999. "First Price Auctions in the Asymmetric N Bidder Case," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 125-142, February.
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    Keywords

    Asymmetric game Auction Phase plane;

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