The Combinatorial Multi-Round Ascending Auction

Bernhard Kasberger and Alexander Teytelboym

Papers from arXiv.org

Abstract: The Combinatorial Multi-Round Ascending Auction (CMRA) is a new auction format that has already been used in several recent European spectrum auctions. We characterize ex-post equilibria that feature auction-specific forms of truthful bidding, demand expansion, and demand reduction for settings where bidders have either decreasing or non-decreasing marginal values. In particular, we show that the truthtelling equilibrium is fragile to small asymmetries in the bidders' caps. On the other hand, if bidders are sufficiently symmetric, the CMRA is vulnerable to risk-free collusion. We propose an alternative activity rule that prevents such collusive strategies but keeps the other equilibria intact. We discuss to what extent our theory is consistent with outcomes in Danish spectrum auctions and how our predictions can be tested using bidding data.

Date: 2022-03, Revised 2024-02
New Economics Papers: this item is included in nep-des and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://arxiv.org/pdf/2203.11783 Latest version (application/pdf)

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:arx:papers:2203.11783

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().