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Side-communication yields efficiency of ascending auctions: The two-items case

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  • Lavi, Ron
  • Oren, Sigal

Abstract

We analyze a simultaneous ascending auction with anonymous item prices, for two items that are substitutes. This popular format entails increased opportunities for coordination among bidders, since bids are observable and can be used as signaling. This has happened, e.g., in the Netherlands 3G Telecom Auction and in the FCC auctions.

Suggested Citation

  • Lavi, Ron & Oren, Sigal, 2012. "Side-communication yields efficiency of ascending auctions: The two-items case," Games and Economic Behavior, Elsevier, vol. 76(2), pages 439-456.
    • Handle: RePEc:eee:gamebe:v:76:y:2012:i:2:p:439-456
    DOI: 10.1016/j.geb.2012.05.011
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    More about this item

    Keywords

    Simultaneous ascending auctions; Myopic bidding; Signaling; Ex-post efficiency;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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