Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123486 
Year of Publication: 
2014
Series/Report no.: 
EPRI Working Paper No. 2014-1
Publisher: 
The University of Western Ontario, Economic Policy Research Institute (EPRI), London (Ontario)
Abstract: 
Existence of a monotone pure-strategy perfect Bayesian equilibrium is proved for a multistage game of first-price auctions with interbidder resale, with any finite number of ex ante different bidders. Endogenous gains at resale complicate the winner's curse and upset previous fixed-point methods to prove existence of monotone equilibria. This paper restructures the fixed-point approach with respect to comparative statics of the resale mechanisms strategically chosen after the auction. Despite speculation possibilities and the discontinuity-inducing uniform tie-breaking rule, at our equilibrium any bid that stands a chance to win is strictly increasing in the bidder's use value.
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.