Equilibria in Second Price Auctions with Private Participation Costs

Xiaoyong Cao, Guofu Tan, Guoqiang Tian and Okan Yilankaya

Koç University-TUSIAD Economic Research Forum Working Papers from Koc University-TUSIAD Economic Research Forum

Abstract: We study equilibria in second price auctions when bidders are independently and privately informed about both their values and participation costs and their joint distributions across bidders are not necessarily identical. We show that there always exists an equilibrium in this general setting with two dimensional types of ex ante heterogeneous bidders. We provide conditions under which the equilibrium is unique. Moreover, when the bidders are ex ante symmetric, we show that there is a unique symmetric equilibrium. We also identify sufficient conditions for existence of asymmetric equilibria.

Keywords: Two-Dimensional Types; Private Participation Costs; Second Price Auctions; Existence and Uniqueness of Equilibrium. (search for similar items in EconPapers)
JEL-codes: C62 C72 D44 D61 D82 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2014-12
New Economics Papers: this item is included in nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Equilibria in second-price auctions with private participation costs (2018)
Working Paper: Equilibria in Second-Price Auctions with Private Participation Costs (2016)
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