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EconoQuantum

On-line version ISSN 2007-9869Print version ISSN 1870-6622

Abstract

FLORES-ZARUR, Karla  and  OLVERA-LOPEZ, William. Simultaneous auctions of identical items by first-price close mechanism with a bonus for buyers. EconoQuantum [online]. 2022, vol.19, n.2, pp.83-92.  Epub June 02, 2023. ISSN 2007-9869.  https://doi.org/10.18381/eq.v19i2.7270.

Objective:

In this paper we study, from the seller’s perspective, how to auction a finite set of identical items when the buyer who obtains the whole set of goods (if any) gets a bonus, such that the seller maximizes his expected revenue and taking into account the strategic behavior of the bidders.

Methodology:

We use Bayesian Games for modelling the situation considering a strategy space equal to R + m for each bidder.

Results:

We show a Symmetric Bayesian Equilibrium for the model as well as the seller’s indifference between several natural ways for offering the bonus to a bidder getting the whole set of items, because he obtains the same expected revenue.

Limitations:

The model regards only identical items.

Originality:

We show an equilibrium bid for a n-personal model of m Simultaneous Auctions under first-price close mechanism considering that there is a kind of extra profit.

Conclusions:

The seller is indifferent between several ways to offer the bonus. It could be interesting to contrast the theoretical results under an experimental framework.

Keywords : Auctions; First Price Mechanism; Bayesian Games; Symmetric Bayesian Nash Equilibrium; Seller's Expected Revenue; C72; C73.

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