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Efficiency levels in sequential auctions with dynamic arrivals

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  • Ron Lavi
  • Ella Segev

Abstract

In an environment with dynamic arrivals of players who wish to purchase only one of multiple identical objects for which they have a private value, we analyze a sequential auction mechanism with an activity rule. If the players play undominated strategies then we are able to bound the efficiency loss compared to an optimal mechanism that maximizes the total welfare. We have no assumptions on the underlying distribution from which the players’ arrival times and valuations for the object are drawn. Moreover we have no assumption of a common prior on this distribution. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Ron Lavi & Ella Segev, 2014. "Efficiency levels in sequential auctions with dynamic arrivals," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(4), pages 791-819, November.
    • Handle: RePEc:spr:jogath:v:43:y:2014:i:4:p:791-819
    DOI: 10.1007/s00182-013-0405-7
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    References listed on IDEAS

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    Cited by:

    1. Patrick Hummel, 2018. "Reserve prices in repeated auctions," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(1), pages 273-299, March.

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    More about this item

    Keywords

    Sequential ascending auctions; Undominated strategies ; Dynamic arrivals; C72;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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