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A Comparison of Standard Multi-Unit Auctions with Synergies

Author

Listed:
  • Stefano Lovo

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique)

  • Gian Luigi Albano

    (Department of Economics - UCL - University College of London [London])

  • Fabrizio Germano

    (Eitan Berglas School of Economics - TAU - Tel Aviv University)

Abstract

In an example where some bidders have superadditive values, we characterize the equilibria of a simultaneous ascending auction and compare the revenue and efficiency generated with ones generated by the sequential, the one-shot simultaneous, and the Vickrey-Clarke-Groves auctions.

Suggested Citation

  • Stefano Lovo & Gian Luigi Albano & Fabrizio Germano, 1999. "A Comparison of Standard Multi-Unit Auctions with Synergies," Working Papers hal-00599418, HAL.
    • Handle: RePEc:hal:wpaper:hal-00599418
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    References listed on IDEAS

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    1. Paul Milgrom, 2000. "Putting Auction Theory to Work: The Simultaneous Ascending Auction," Journal of Political Economy, University of Chicago Press, vol. 108(2), pages 245-272, April.
    2. Rosenthal, Robert W. & Wang, Ruqu, 1996. "Simultaneous Auctions with Synergies and Common Values," Games and Economic Behavior, Elsevier, vol. 17(1), pages 32-55, November.
    3. Cramton, Peter, 1998. "Ascending auctions," European Economic Review, Elsevier, vol. 42(3-5), pages 745-756, May.
    4. Peter Cramton, 1997. "The FCC Spectrum Auctions: An Early Assessment," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(3), pages 431-495, September.
    5. Krishna, Vijay & Rosenthal, Robert W., 1996. "Simultaneous Auctions with Synergies," Games and Economic Behavior, Elsevier, vol. 17(1), pages 1-31, November.
    6. R. Preston McAfee & John McMillan, 1996. "Analyzing the Airwaves Auction," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 159-175, Winter.
    7. Vijay Krishna & Motty Perry, 1997. "Efficient Mechanism Design," Game Theory and Information 9703010, University Library of Munich, Germany, revised 28 Apr 1998.
    8. Branco, Fernando, 1997. "Sequential auctions with synergies: An example," Economics Letters, Elsevier, vol. 54(2), pages 159-163, February.
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    Cited by:

    1. Gian Albano & Fabrizio Germano & Stefano Lovo, 2006. "Retaliatory Equilibria in a Japanese Ascending Auction for Multiple Objects," Review of Economic Design, Springer;Society for Economic Design, vol. 10(1), pages 1-8, April.
    2. LOVO, Stefano & ALBANO, Gian Luigi & GERMANO, Fabrizio, 2002. "On some collusive and signaling equilibria in ascending auctions for multiple objects," HEC Research Papers Series 765, HEC Paris.
    3. Dakshina De Silva & Georgia Kosmopoulou & Beatrice Pagel & Ronald Peeters, 2013. "The Impact of Timing on Bidding Behavior in Procurement Auctions of Contracts with Private Costs," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(3), pages 321-343, May.
    4. Simon Finster, 2020. "Strategic Bidding in Product-Mix, Sequential, and Simultaneous Auctions," Economics Papers 2020-W03, Economics Group, Nuffield College, University of Oxford.
    5. Zheng, Charles Z., 2012. "Jump bidding and overconcentration in decentralized simultaneous ascending auctions," Games and Economic Behavior, Elsevier, vol. 76(2), pages 648-664.
    6. Meng, Xin & Gunay, Hikmet, 2017. "Exposure problem in multi-unit auctions," International Journal of Industrial Organization, Elsevier, vol. 52(C), pages 165-187.
    7. Chernomaz, Kirill & Levin, Dan, 2012. "Efficiency and synergy in a multi-unit auction with and without package bidding: An experimental study," Games and Economic Behavior, Elsevier, vol. 76(2), pages 611-635.
    8. Dakshina G. De Silva & Anuruddha Kankanamge & Georgia Kosmopoulou, 2005. "The Impact Of Change In Auction Format On Bidding Behavior," Microeconomics 0512009, University Library of Munich, Germany.
    9. Lunander, Anders & Lundberg, Sofia, 2009. "Do Combinatorial Procurement Auctions Lower Cost? - An Empirical Analysis of Public Procurement of Multiple Contracts," Umeå Economic Studies 776, Umeå University, Department of Economics, revised 16 Sep 2009.
    10. Branco, Fernando, 2001. "On the superiority of the multiple round ascending bid auction," Economics Letters, Elsevier, vol. 70(2), pages 187-194, February.

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