On the Failure of Monotonicity in Uniform-Price Auctions
Posted: 14 Jan 2008
Except for well-studied special cases in which bidders have single-unit demand or bidders are risk-neutral with independent private values, equilibria of uniform-price auctions with private values need not possess familiar monotonicity properties. In particular, equilibria in weakly undominated strategies may exist in which some bidders bid strictly less on some units when they have strictly higher values for every unit.
Keywords: Uniform-price auction, monotonicity, independence, affiliation
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