The Combinatorial Multi-Round Ascending Auction

Fuente: arXiv
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Hauptverfasser: Kasberger, Bernhard, Teytelboym, Alexander
Format: Preprint
Veröffentlicht: 2022
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author Kasberger, Bernhard
Teytelboym, Alexander
author_facet Kasberger, Bernhard
Teytelboym, Alexander
contents The Combinatorial Multi-Round Ascending Auction (CMRA) is a new auction format used in recent European spectrum auctions. We show that an auction-specific version of truthful bidding leads to an efficient allocation. We then characterize different ex-post equilibria that feature truthful bidding, demand expansion, and demand reduction. The truthtelling equilibrium is fragile to small asymmetries in the bidders' caps. Moreover, if bidders are sufficiently symmetric, the CMRA is vulnerable to risk-free collusion. We propose an alternative activity rule that prevents such collusive strategies while keeping other equilibria intact. We discuss outcomes of several Danish CMRAs in light of our equilibrium predictions.
format Preprint
id arxiv_https___arxiv_org_abs_2203_11783
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle The Combinatorial Multi-Round Ascending Auction
Kasberger, Bernhard
Teytelboym, Alexander
Theoretical Economics
Computer Science and Game Theory
The Combinatorial Multi-Round Ascending Auction (CMRA) is a new auction format used in recent European spectrum auctions. We show that an auction-specific version of truthful bidding leads to an efficient allocation. We then characterize different ex-post equilibria that feature truthful bidding, demand expansion, and demand reduction. The truthtelling equilibrium is fragile to small asymmetries in the bidders' caps. Moreover, if bidders are sufficiently symmetric, the CMRA is vulnerable to risk-free collusion. We propose an alternative activity rule that prevents such collusive strategies while keeping other equilibria intact. We discuss outcomes of several Danish CMRAs in light of our equilibrium predictions.
title The Combinatorial Multi-Round Ascending Auction
topic Theoretical Economics
Computer Science and Game Theory
url https://arxiv.org/abs/2203.11783