Theoretical approaches to lowest unique bid auctions

B-Tier
Journal: Journal of Mathematical Economics
Year: 2014
Volume: 52
Issue: C
Pages: 16-24

Authors (2)

Costa-Gomes, Miguel A. (not in RePEc) Shimoji, Makoto

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

In this paper, we analyze a game called the lowest unique bid auction (LUBA). It is known that there is no closed form solution for the symmetric mixed strategy equilibria in LUBA. We propose two alternative approaches. We use weak dominance to identify upper bounds for players’ bids. Under symmetry, we provide a method to compute a mixed strategy equilibrium by utilizing the recursive structure of the winning chances of the bids under one assumption.

Technical Details

RePEc Handle
repec:eee:mateco:v:52:y:2014:i:c:p:16-24
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25