Download or read book Sequential Auctions with Ambiguity written by Gagan Pratap Ghosh and published by . This book was released on 2019 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies sequential auctions in the presence of Knightian uncertainty about the distribution of values. We propose equilibrium notions based on the multiple selves approach to deal with the possible time inconsistency that arises with dynamic bidding for max-min bidders. We characterize the unique symmetric equilibrium and show that it is robust to different specifications of preferences. We demonstrate that equilibrium prices are a supermartingale under dynamic consistency, providing an explanation for the well-documented puzzle ``declining price anomaly'' in sequential auctions. The model delivers rich testable implications: on the practical side, declining prices imply that bidders' worst-case belief first-order stochastically dominates the true distribution of values; on the theoretical side, dynamic inconsistency, which can arise when bidders have multiple priors, generates history dependence in bidding strategies.