Existence of Equilibria in Auctions with Interdependent Values: Two Symmetic Bidders
Stanford Graduate School of Business Research Paper Series No. 2057
23 Pages Posted: 14 Jul 2010 Last revised: 4 Aug 2010
Date Written: February 1, 2010
For two symmetric bidders, weak monotonicity conditions are shown to imply existence of an equilibrium in mixed behavioral strategies for a sealed-bid first-price auction of an item for which each bidder's value depends on every bidder's observed signal. Such an equilibrium has atomless distributions of bids and thus is unaffected by how tied bids are resolved.
JEL Classification: C72, D44
Suggested Citation: Suggested Citation