Asymmetric first-price menu auctions under intricate uncertainty
Seungjin Han ()
Journal of Economic Theory, 2013, vol. 148, issue 5, 2068-2095
This paper studies asymmetric first-price menu auctions in the procurement environment where the buyer does not commit to a decision rule and asymmetric sellers have interdependent costs and statistically affiliated signals. Sellers compete in bidding a menu of contracts, where a contract specifies a vector of characteristics and a payment required from the buyer for delivering these characteristics. The buyer does not commit ex-ante to a decision rule but rather upon observing all the menus offered by sellers chooses the best contract. This paper establishes the existence of a continuum of separating monotone equilibria in this game bounded above by the jointly ex-post efficient outcome and below by the jointly interim efficient outcome. It shows that the jointly ex-post efficient equilibrium outcome is the only ex-post renegotiation-proof outcome and it is also ex-ante robust to all continuation equilibria.
Keywords: First-price menu auction; Interdependent values; Monotone equilibria; Joint ex-post renegotiation proofness; Ex-ante robustness (search for similar items in EconPapers)
JEL-codes: C72 D44 D82 (search for similar items in EconPapers)
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Working Paper: Asymmetric First-Price Menu Auctions under Intricate Uncertainty (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:148:y:2013:i:5:p:2068-2095
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