On Efficiency of the English Auction

27 Pages Posted: 29 Nov 2003

See all articles by Oleksii Birulin

Oleksii Birulin

The University of Sydney

Sergei Izmalkov

New Economic School

Date Written: November 2, 2003

Abstract

We study efficiency properties of the irrevocable exit English auction in a setting with interdependent values. Maskin (1992) shows that the pairwise single-crossing condition is both necessary and sufficient for efficiency of the English auction with two bidders. This paper extends both Maskin's result and the single-crossing condition to the case of N bidders. We introduce the generalized single crossing - a fairly intuitive extension of the pairwise singlecrossing - and show that it is both a necessary and sufficient condition for the existence of an efficient equilibrium in the N-bidder English auction.

Keywords: English auction, efficient auction, ex post equilibrium, single-crossing, interdependent values

JEL Classification: D44, C72, C73

Suggested Citation

Birulin, Oleksii and Izmalkov, Sergei, On Efficiency of the English Auction (November 2, 2003). Available at SSRN: https://ssrn.com/abstract=471806 or http://dx.doi.org/10.2139/ssrn.471806

Oleksii Birulin

The University of Sydney ( email )

University of Sydney
Sydney, NSW 2006
Australia

Sergei Izmalkov (Contact Author)

New Economic School ( email )

100A Novaya Street
Moscow, Skolkovo 143026
Russia

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