Defensive sniping and efficiency in simultaneous hard-close proxy auctions

B-Tier
Journal: Journal of Mathematical Economics
Year: 2012
Volume: 48
Issue: 1
Pages: 51-58

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

A well-known myopic bidding strategy fails to support an equilibrium of simultaneous ascending proxy auctions for heterogeneous items when a hard-close rule is in place. This is because, in common with the single-auction case, last minute bidding (sniping) is a best response to naive behaviour. However, a modification to the myopic strategy in which all bidders submit an additional bid in the closing stages of the auction–a practice I call ‘defensive sniping’–is shown to yield an efficient, belief-free equilibrium of such environments. This equilibrium is essentially unique within the class of belief-free, efficient equilibria.

Technical Details

RePEc Handle
repec:eee:mateco:v:48:y:2012:i:1:p:51-58
Journal Field
Theory
Author Count
1
Added to Database
2026-01-29