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Dissolving a Common Value Partnership in a Repeated 'queto' Game

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  • Paul Schweinzer

Abstract

We analyse a common value, alternating ascending bid, first price auction as a repeated game of incomplete information where the bidders hold equal property rights to the object auctioned off. Consequently they can accept (by quitting) or veto any proposed settlement. We characterise the essentially unique, sequentially rational dynamic Bayesian Nash equilibrium of this game under incomplete information on one side and discuss its properties.

Suggested Citation

  • Paul Schweinzer, 2003. "Dissolving a Common Value Partnership in a Repeated 'queto' Game," Discussion Paper Series dp318, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    • Handle: RePEc:huj:dispap:dp318
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/6017 is not listed on IDEAS
    2. Kittsteiner, Thomas, 2003. "Partnerships and double auctions with interdependent valuations," Games and Economic Behavior, Elsevier, vol. 44(1), pages 54-76, July.
    3. Eilon Solan & Nicolas Vieille, 1998. "Quitting Games," Discussion Papers 1227, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Mertens,Jean-François & Sorin,Sylvain & Zamir,Shmuel, 2015. "Repeated Games," Cambridge Books, Cambridge University Press, number 9781107030206, September.
      • Mertens,Jean-François & Sorin,Sylvain & Zamir,Shmuel, 2015. "Repeated Games," Cambridge Books, Cambridge University Press, number 9781107662636, September.
    5. Benny Moldovanu, 2002. "How to Dissolve a Partnership," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(1), pages 66-80, March.
    6. Geanakoplos, John, 1994. "Common knowledge," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 40, pages 1437-1496, Elsevier.
    7. Zvika Neeman, 1999. "Property Rights and Efficiency of Voluntary Bargaining under Asymmetric Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(3), pages 679-691.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    repeated games; incomplete information; common value auctions; partnership dissolution;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure

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