Conferences at Department of Economics, University of Toronto, Canadian Economic Theory Conference 2012

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Existence of Monotone Pure Strategy Equilibria in First-Price Auctions with Resale

Charles Zheng*

Date: 2012-05-05 3:15 pm – 3:45 pm
Last modified: 2012-05-05

Abstract


A perfect Bayesian equilibrium with monotone pure strategies exists in an independent private value first-price auction followed by the winner's choosing a mechanism to offer resale.  We allow for any number of ex ante different bidders and any incentive feasible resale mechanisms.  The proof is based on combining a mechanism-design characterization of resale with the fixed-point method for Bayesian games.

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