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On Effciency of the English Auction

Author

Listed:
  • Oleksii Birulin

    (University of Sydney)

  • Sergei Izmalkov

    (New Economic School)

Abstract

We study efficiency properties of the irrevocable exit English auction in a setting with interdependent values. Maskin (1992) shows that the pairwise single-crossing condition is sufficient for efficiency of the English auction with two bidders and suggests that it is also a necessary condition. This paper clarifies and extends Maskin's results to the case of N bidders. We introduce the generalized single crossing condition - a fairly intuitive extension of the pairwise single-crossing condition - and prove that it is essentially a necessary and sufficient condition for the existence of an efficient equilibrium of the N-bidder English auction.

Suggested Citation

  • Oleksii Birulin & Sergei Izmalkov, 2009. "On Effciency of the English Auction," Working Papers w0139, New Economic School (NES).
    • Handle: RePEc:abo:neswpt:w0139
    as

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    File URL: https://www.nes.ru/files/Preprints-resh/WP139.pdf
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    References listed on IDEAS

    as
    1. Kirchkamp, Oliver & Moldovanu, Benny, 2004. "An experimental analysis of auctions with interdependent valuations," Games and Economic Behavior, Elsevier, vol. 48(1), pages 54-85, July.
    2. Krishna, Vijay, 2003. "Asymmetric English auctions," Journal of Economic Theory, Elsevier, vol. 112(2), pages 261-288, October.
    3. Motty Perry & Philip J. Reny, 2002. "An Efficient Auction," Econometrica, Econometric Society, vol. 70(3), pages 1199-1212, May.
    4. Milgrom, Paul R & Weber, Robert J, 1982. "A Theory of Auctions and Competitive Bidding," Econometrica, Econometric Society, vol. 50(5), pages 1089-1122, September.
    Full references (including those not matched with items on IDEAS)

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