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| Main Authors: | , |
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| Format: | Preprint |
| Published: |
2022
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2206.11516 |
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| _version_ | 1866916117918777344 |
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| author | Zarpala, Lamprirni Voliotis, Dimitris |
| author_facet | Zarpala, Lamprirni Voliotis, Dimitris |
| contents | We introduce the "local-global" approach for a divisible portfolio and perform an equilibrium analysis for two variants of core-selecting auctions. Our main novelty is extending the Nearest-VCG pricing rule in a dynamic two-round setup, mitigating bidders' free-riding incentives and further reducing the sellers' costs. The two-round setup admits an information-revelation mechanism that may offset the "winner's curse", and it is in accord with the existing iterative procedure of combinatorial auctions. With portfolio trading becoming an increasingly important part of investment strategies, our mechanism contributes to increasing interest in portfolio auction protocols. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2206_11516 |
| institution | arXiv |
| publishDate | 2022 |
| record_format | arxiv |
| spellingShingle | A core-selecting auction for portfolio's packages Zarpala, Lamprirni Voliotis, Dimitris Theoretical Economics 91B26, 91B28 We introduce the "local-global" approach for a divisible portfolio and perform an equilibrium analysis for two variants of core-selecting auctions. Our main novelty is extending the Nearest-VCG pricing rule in a dynamic two-round setup, mitigating bidders' free-riding incentives and further reducing the sellers' costs. The two-round setup admits an information-revelation mechanism that may offset the "winner's curse", and it is in accord with the existing iterative procedure of combinatorial auctions. With portfolio trading becoming an increasingly important part of investment strategies, our mechanism contributes to increasing interest in portfolio auction protocols. |
| title | A core-selecting auction for portfolio's packages |
| topic | Theoretical Economics 91B26, 91B28 |
| url | https://arxiv.org/abs/2206.11516 |