Autor(es): Gonçalves, Ricardo ; Ray, Indrajit
Data: 2024
Identificador Persistente: http://hdl.handle.net/10400.14/42402
Origem: Veritati - Repositório Institucional da Universidade Católica Portuguesa
Assunto(s): Discrete bids; Japanese-English auctions; Partitions; Pooling equilibrium; Seller's revenue; Separating equilibrium; Wallet game
We consider the set-up of a Japanese-English auction with exogenously fixed discrete bid levels for a specific game (the wallet game with two bidders, following Goncalves and Ray in Econ Lett 159:177-179, 2017). We show that in this auction, partition equilibria exist that may be separating or pooling. We illustrate separating and pooling equilibria in games with two and three discrete bid levels and compare the revenues of the seller from these equilibria to find the optimal bid levels for these cases.
