A Two Stage Sequential Auction with Multi-Unit Demands

Abstract

Working within the independent private values paradigm, I examine a sequence of two second price auctions where individual bidders have diminishing marginal valuations. Equilibria are characterized for complete and incomplete informational settings. When information is complete, allocations can be inefficient and price sequences are constant or decreasing. However, when information is incomplete and symmetric, equilibrium behavior produces efficient outcomes and an expectation of increasing prices. These divergent findings are reconciled using an argument based on ex ante bidder asymmetry that can also explain the declining price anomaly. Finally, comparisons to other auctions are made in terms efficiency and revenue generation.Journal of Economic LiteratureClassification Number: D44.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 85 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.