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.