Author(s): Gonçalves, Ricardo ; Ray, Indrajit
Date: 2017
Persistent ID: http://hdl.handle.net/10400.14/25150
Origin: Veritati - Repositório Institucional da Universidade Católica Portuguesa
Subject(s): Japanese-English auctions; Wallet game; Discrete bids
It is well-known that in the wallet game with two bidders, bidding twice the (individual) signal is an equilibrium. We prove that this strategy is never an equilibrium in a Japanese–English auction once discrete bid levels are introduced; we also discuss the implications of this result.
