Symmetric Separating Equilibria in English Auctions
SSRI Working Paper No. 2017R
9 Pages Posted: 6 Dec 2000
Date Written: October 9, 2000
We characterize the set of perfect Bayesian equilibria in symmetric separating strategies in Milgrom and Weber's (1982) model of English auctions. There is a continuum of such equilibria. The equilibrium derived by Milgrom and Weber is that in which bids are maximal. Only in the case of pure private values does a restriction to weakly undominated strategies select a unique equilibrium. This has important implications for empirical studies of English auctions, particularly outside the pure private values paradigm.
JEL Classification: D44, D82
Suggested Citation: Suggested Citation