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Bibliographic Details
Main Authors: Zarpala, Lamprirni, Voliotis, Dimitris
Format: Preprint
Published: 2022
Subjects:
Online Access:https://arxiv.org/abs/2206.11516
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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