Multiple-Object Auctions with Budget Constrained Bidders

S-Tier
Journal: Review of Economic Studies
Year: 2001
Volume: 68
Issue: 1
Pages: 155-179

Authors (2)

Jean-Pierre Benoît (not in RePEc) Vijay Krishna (Pennsylvania State University)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

A seller with two objects faces a group of bidders who are subject to budget constraints. The objects have common values to all bidders but need not be identical, and may be either complements or substitutes. In a simple complete information setting we show: (1) if the objects are sold by means of a sequence of open ascending auctions, then it is always optimal to sell the more valuable object first; (2) the sequential auction yields more revenue than the simultaneous ascending auction used recently by the FCC if the discrepancy in the values is large, or if there are significant complementarities; (3) a hybrid simultaneous-sequential form is revenue superior to the sequential auction; and (4) budget constraints arise endogenously.

Technical Details

RePEc Handle
repec:oup:restud:v:68:y:2001:i:1:p:155-179.
Journal Field
General
Author Count
2
Added to Database
2026-01-25