Multi-Unit Auctions in Which Almost Every Bid Wins
University of Illinois, Bureau of Economics & Business Research Working Paper No. 98-0120
Posted: 27 Oct 1999
Date Written: November, 1999
We consider multi-unit auctions in which there are enough units so that each bidder but one wins every unit that they bid on. We characterize the equilibrium bidding strategy for three different payment rules: the pay-your-bid auction, the uniform price auction in which the price equals the lowest winning bid, and the uniform price auction in which the price equals the highest losing bid. We also consider the Vickrey pricing rule. In the case we examine, the four auctions are all efficient and thus are revenue equivalent.
JEL Classification: D44
Suggested Citation: Suggested Citation