Asymptotic prices in uniform-price multi-unit auctions

Indranil Chakraborty () and Richard Engelbrecht-Wiggans ()

Economic Theory, 2005, vol. 26, issue 4, 983-987

Abstract: This paper considers a uniform-price auction in which each of n symmetric bidders can place, say, M bids. Each bidder has privately known, decreasing marginal values from an arbitrary M -dimensional distribution. We provide a quantile-type description of the asymptotic price that appropriately generalizes the characterization of the unit-demand asymptotic price. Specifically, the limiting price equals the $ (1-\alpha )$ -th quantile of the “average” of the marginal distributions if a fraction $\alpha $ of the demand is met asymptotically. The result also implies that the expected price in the limit as n becomes large depends only on the aggregate of the marginal distributions of each bidder’s marginal values (and not on the correlation between the marginal values). Copyright Springer-Verlag Berlin/Heidelberg 2005

Keywords: Multi-unit auctions; Uniform price. (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s00199-004-0549-6

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