TY - JOUR
T1 - Simultaneous auctions with synergies
AU - Krishna, Vijay
AU - Rosenthal, Robert W.
N1 - Funding Information:
* We thank the Center for Rationality and Interactive Decision Theory at the Hebrew University for its generous hospitality during a visit that led to this project. We also thank Sergiu Hart, Dan Levin, John Morgan, Abraham Neyman, Ruqu Wang, and Robert Wilson for helpful discussions, a referee for several valuable suggestions, Rick Horan for able research assistance, and the National Science Foundation for ®nancial support.
PY - 1996/11
Y1 - 1996/11
N2 - Motivated by recent auctions of licenses for the radio-frequency spectrum, we consider situations where multiple objects are auctioned simultaneously by means of a second-price, sealed-bid auction. For some buyers, called global bidders, the value of multiple objects exceeds the sum of the objects' values separately. Others, called local bidders, are interested in only one object. In a simple independent private values setting, we characterize an equilibrium that is symmetric among the global bidders and derive some comparative statics results. In particular, the addition of global bidders leads to less aggressive bidding. Journal of Economic Literature Classification Number: D44.
AB - Motivated by recent auctions of licenses for the radio-frequency spectrum, we consider situations where multiple objects are auctioned simultaneously by means of a second-price, sealed-bid auction. For some buyers, called global bidders, the value of multiple objects exceeds the sum of the objects' values separately. Others, called local bidders, are interested in only one object. In a simple independent private values setting, we characterize an equilibrium that is symmetric among the global bidders and derive some comparative statics results. In particular, the addition of global bidders leads to less aggressive bidding. Journal of Economic Literature Classification Number: D44.
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U2 - 10.1006/game.1996.0092
DO - 10.1006/game.1996.0092
M3 - Article
AN - SCOPUS:0030295846
SN - 0899-8256
VL - 17
SP - 1
EP - 31
JO - Games and Economic Behavior
JF - Games and Economic Behavior
IS - 1
ER -