Vickrey auctions with reserve pricing

B-Tier
Journal: Economic Theory
Year: 2004
Volume: 23
Issue: 3
Pages: 493-505

Authors (2)

Lawrence Ausubel (not in RePEc) Peter Cramton (Universität zu Köln)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

We generalize the Vickrey auction to allow for reserve pricing in a multi-unit auction with interdependent values. In the Vickrey auction with reserve pricing, the seller determines the quantity to be made available as a function of the bidders' reports of private information, and then efficiently allocates this quantity among the bidders. Truthful bidding is a dominant strategy with private values and an ex post equilibrium with interdependent values. If the auction is followed by resale, then truthful bidding remains an equilibrium in the auction-plus-resale game. In settings with perfect resale, the Vickrey auction with reserve pricing maximizes seller revenues. Copyright Springer-Verlag Berlin/Heidelberg 2004

Technical Details

RePEc Handle
repec:spr:joecth:v:23:y:2004:i:3:p:493-505
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25