Multiple Object Auctions with Budget Constrained Bidders

Multiple Object Auctions with Budget Constrained Bidders
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Total Pages : 0
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ISBN-10 : OCLC:1376254436
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Book Synopsis Multiple Object Auctions with Budget Constrained Bidders by : Jean-Pierre Benoit

Download or read book Multiple Object Auctions with Budget Constrained Bidders written by Jean-Pierre Benoit and published by . This book was released on 2000 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A seller with two objects faces a group of bidders who are subject to budget constraints. The objects have common values to all bidders, but need not be identical and may be either complements or substitutes. In a simple complete information setting we show: (1) if the objects are sold by means of a sequence of open ascending auctions, then it is always optimal to sell the more valuable object first; (2) the sequential auction yields more revenue than the simultaneous ascending auction used recently by the FCC if the discrepancy in the values is large, or if there are significant complementarities; (3) a hybrid simultaneous-sequential form is revenue superior to the sequential auction; and (4) budget constraints arise endogenously.


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