Properties of Equilibrium Strategies in Multiple-Unit, Uniform-Price Auctions

Michal Bresky

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: The paper analyzes the essential properties of bidder equilibrium strategies in the multi-unit uniform-price auction. In the auction the seller offers several identical units for sale, specifies a minimum accepted bid (reservation price) and sets maximum number of bids that any bidder can submit. Under these restrictions bidders use strictly increasing strategies in a symmetric equilibrium more often, and in many cases the reservation price increases the bidder's strategy which is typical in single-unit auctions. Such an auction procedure implies a unique equilibrium strategy in some cases. Thus the number of bid restriction and reservation price present in real-life multi-unit auctions restore some properties of equilibrium strategies typical for single-unit auctions.

Keywords: Multi-unit auction; uniqueness of equilibrium in discontinuous games; uniform-price auction with reservation price. (search for similar items in EconPapers)
JEL-codes: D44 (search for similar items in EconPapers)
Date: 2008-05
New Economics Papers: this item is included in nep-gth
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Citations: View citations in EconPapers (2)

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