On the strictly descending multi-unit auction

Vitali Gretschko, Alexander Rasch and Achim Wambach

Journal of Mathematical Economics, 2014, vol. 50, issue C, 79-85

Abstract: We analyze the bidding behavior in a strictly descending multi-unit auction where the price decreases continuously without going back to the initial start price once an object is sold. We prove that any equilibrium in the multi-unit descending auction is inefficient. We derive a symmetric equilibrium for general distribution functions as well as an arbitrary number of bidders and objects. Moreover, equilibrium bidding is characterized by a set of initial value problems. Our analysis thus generalizes previous results in the literature.

Keywords: Discriminatory descending auction; Dutch auction; First-price sealed-bid auction; Multi-unit auction (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:50:y:2014:i:c:p:79-85

DOI: 10.1016/j.jmateco.2013.10.009

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