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Equilibrium of a sequence of auctions when bidders demand multiple items

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  • Liu, Qingmin

Abstract

We construct an ex post perfect equilibrium in a sequence of second-price auctions with two bidders where each bidder's marginal values for additional units are decreasing. This equilibrium implies an increasing path of transaction prices and is ex post efficient.

Suggested Citation

  • Liu, Qingmin, 2011. "Equilibrium of a sequence of auctions when bidders demand multiple items," Economics Letters, Elsevier, vol. 112(2), pages 192-194, August.
    • Handle: RePEc:eee:ecolet:v:112:y:2011:i:2:p:192-194
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    References listed on IDEAS

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    1. Balázs Szentes, 2007. "Two-Object Two-Bidder Simultaneous Auctions," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 483-493.
    2. Ashenfelter, Orley, 1989. "How Auctions Work for Wine and Art," Journal of Economic Perspectives, American Economic Association, vol. 3(3), pages 23-36, Summer.
    3. McAfee R. Preston & Vincent Daniel, 1993. "The Declining Price Anomaly," Journal of Economic Theory, Elsevier, vol. 60(1), pages 191-212, June.
    4. Lawrence M. Ausubel, 2004. "An Efficient Ascending-Bid Auction for Multiple Objects," American Economic Review, American Economic Association, vol. 94(5), pages 1452-1475, December.
    5. Krishna, Vijay, 2009. "Auction Theory," Elsevier Monographs, Elsevier, edition 2, number 9780123745071.
    6. Katzman, Brett, 1999. "A Two Stage Sequential Auction with Multi-Unit Demands," Journal of Economic Theory, Elsevier, vol. 86(1), pages 77-99, May.
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    Cited by:

    1. Hongpeng Guo & Zhihao Lv & Junyi Hua & Hongxu Yuan & Qingyu Yu, 2021. "Design of Combined Auction Model for Emission Rights of International Forestry Carbon Sequestration and Other Pollutants Based on SMRA," Sustainability, MDPI, vol. 13(20), pages 1-18, October.
    2. Javier D. Donna & José†Antonio Espín†Sánchez, 2018. "Complements and substitutes in sequential auctions: the case of water auctions," RAND Journal of Economics, RAND Corporation, vol. 49(1), pages 87-127, March.
    3. Yao, Zhiyong & Xiao, Zhiguo, 2013. "A note on sequential auctions with multi-unit demand," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 276-281.

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