On the incentive properties of multi-item auctions

On the incentive properties of multi-item auctions

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Article ID: iaor19992495
Country: Germany
Volume: 27
Issue: 1
Start Page Number: 1
End Page Number: 19
Publication Date: Jan 1998
Journal: International Journal of Game Theory
Authors:
Abstract:

In a market of indivisible obects where a buyer consumes at most one object, the buyer-optimal auction is a multi-item generalization of Vickrey's second-price auction. If the optimal auction is formulated as a strategic game, it is well-known that it satisfies good incentive properties, i.e., the honest strategy profile is a Nash equilibrium, a unique perfect equilibrium and a dominant strategy equilibrium. For each of the three incentive properties, it is shown that the optimal auction is a unique auction satisfying the property. The uniqueness results are derived in a general setting with budget constraints and non-linear utilities.

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