On nondegenerate equilibria of double auctions with several buyers and a price floor

B-Tier
Journal: Economic Theory
Year: 2022
Volume: 73
Issue: 2
Pages: 625-654

Authors (2)

Pavlo Prokopovych (Kyiv School of Economics) Nicholas C. Yannelis (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract This paper investigates the existence of a nondegenerate pure-strategy Bayesian-Nash equilibrium in a double auction between one seller and several heterogeneous buyers in the independent private value framework. It begins with three examples describing some of the model’s particular features. After studying a number of continuity-related properties of the interim payoff functions, we construct a sequence of strategy profiles that converges to a nondegenerate monotone Bayesian-Nash equilibrium of the game under some strict monotonicity conditions. The equilibrium existence result is applied to a double auction with risk-averse bidders.

Technical Details

RePEc Handle
repec:spr:joecth:v:73:y:2022:i:2:d:10.1007_s00199-021-01372-7
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29