Author(s):
Moreira, Humberto Ataíde ; Araújo, Aloísio Pessoa de ; Castro Filho, Luciano I. de
Date: 2008
Persistent ID: http://hdl.handle.net/10438/1010
Origin: Oasisbr
Subject(s): Auctions; Pure strategy equilibria; Non-monotonic bidding functions; Tie-breaking rules; Economia; Leilões; Auctions; Auctions; Pure strategy equilibria; Pure strategy equilibria; Non-monotonic bidding functions; Non-monotonic bidding functions; Tie-breaking rules; Tie-breaking rules; Economia; Economia; Leilões; Leilões
Description
We give necessary and sufficient conditions for the existence of symmetric equilibrium without ties in interdependent values auctions, with multidimensional independent types and no monotonic assumptions. In this case, non-monotonic equilibria might happen. When the necessary and sufficient conditions are not satisfied, there are ties with positive probability. In such case, we are still able to prove the existence of pure strategy equilibrium with an all-pay auction tie-breaking rule. As a direct implication of these results, we obtain a generalization of the Revenue Equivalence Theorem. From the robustness of equilibrium existence for all-pay auctions in multidimensional setting, an interpretation of our results can give a new justification to the use of tournaments in practice.
