On nondegenerate equilibria of double auctions with several buyers and a price floor

Pavlo Prokopovych and Nicholas C. Yannelis ()
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Nicholas C. Yannelis: University of Iowa

Economic Theory, 2022, vol. 73, issue 2, No 12, 625-654

Abstract: Abstract This paper investigates the existence of a nondegenerate pure-strategy Bayesian-Nash equilibrium in a double auction between one seller and several heterogeneous buyers in the independent private value framework. It begins with three examples describing some of the model’s particular features. After studying a number of continuity-related properties of the interim payoff functions, we construct a sequence of strategy profiles that converges to a nondegenerate monotone Bayesian-Nash equilibrium of the game under some strict monotonicity conditions. The equilibrium existence result is applied to a double auction with risk-averse bidders.

Keywords: Double auction; Nondegenerate equilibrium; Generalized convexity; Payoff security; Local intersection property (search for similar items in EconPapers)
JEL-codes: C65 C72 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s00199-021-01372-7

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