An equilibrium analysis of a core-selecting package auction with reserve prices

Ryuji Sano

Review of Economic Design, 2018, vol. 22, issue 3, No 1, 122 pages

Abstract: Abstract This study analyzes the equilibrium of a core-selecting package auction under incomplete information. The ascending proxy auction of Ausubel and Milgrom (Front Theor Econ 1:1–42, 2002) is considered in a stylized environment with two goods, two local bidders, and one global bidder. Local bidders shade bids in the equilibrium because of the free-riding incentive. We examine the effect of reserve prices. We show that a reserve price for individual goods increases the equilibrium local bids, whereas they may be decreased by a reserve price for the package of goods. A flexible non-monotonic reserve price rule can improve allocative efficiency as well as seller revenue in the equilibrium.

Keywords: Core-selecting auction; Package auction; Ascending proxy auction; Reserve price (search for similar items in EconPapers)
JEL-codes: D44 D47 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10058-018-0212-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:reecde:v:22:y:2018:i:3:d:10.1007_s10058-018-0212-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10058

DOI: 10.1007/s10058-018-0212-5

Access Statistics for this article

Review of Economic Design is currently edited by Atila Abdulkadiroglu, Fuhito Kojima and Tilman Börgers

More articles in Review of Economic Design from Springer, Society for Economic Design
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().