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Existence of monotone equilibria in large double auctions

Author

Listed:
  • Barelli, Paulo

    (Department of Economics, University of Rochester)

  • Govindan, Srihari

    (Department of Economics, University of Rochester)

Abstract

We provide a shorter proof of the main result in Reny and Perry (Econometrica 2006), by establishing a lower semicontinuity property of auctions as the number of traders goes to infinity, leveraging existence of equilibria in the limit "auction". Our proof also eliminates two of the assumptions in their paper.

Suggested Citation

  • Barelli, Paulo & Govindan, Srihari, 2024. "Existence of monotone equilibria in large double auctions," Theoretical Economics, Econometric Society, vol. 19(2), May.
    • Handle: RePEc:the:publsh:5486
    as

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    File URL: http://econtheory.org/ojs/index.php/te/article/viewFile/20240565/39113/1187
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    References listed on IDEAS

    as
    1. Philippe Bich & Rida Laraki, 2017. "On the Existence of approximative Equilibria and Sharing Rule Solutions in Discontinuous Games," Post-Print hal-01396183, HAL.
    2. Bich, Philippe & Laraki, Rida, 2017. "On the existence of approximate equilibria and sharing rule solutions in discontinuous games," Theoretical Economics, Econometric Society, vol. 12(1), January.
    3. Govindan, Srihari & Reny, Philip J. & Robson, Arthur J., 2003. "A short proof of Harsanyi's purification theorem," Games and Economic Behavior, Elsevier, vol. 45(2), pages 369-374, November.
    4. Athey, Susan, 2001. "Single Crossing Properties and the Existence of Pure Strategy Equilibria in Games of Incomplete Information," Econometrica, Econometric Society, vol. 69(4), pages 861-889, July.
    5. Philippe Bich & Rida Laraki, 2017. "On the Existence of approximative Equilibria and Sharing Rule Solutions in Discontinuous Games," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01396183, HAL.
    6. Philippe Bich & Rida Laraki, 2017. "On the Existence of approximative Equilibria and Sharing Rule Solutions in Discontinuous Games," PSE-Ecole d'économie de Paris (Postprint) hal-01396183, HAL.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Monotone equilibrium; large auctions; rational expectations equilibrium; degree theory;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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