Core-stable Rings in Second Price Auctions with Common Values
Data
20.09.2010
20.09.2010
Autori
Françoise Forges, Ram Orzach
Codice JEL
C71, C72, D44
C71, C72, D44
Parole chiave:
Auctions, Bayesian game, Collusion, Core, Partition form game, Characteristic function
Auctions, Bayesian game, Collusion, Core, Partition form game, Characteristic function
Publisher
Climate Change and Sustainable Development
Climate Change and Sustainable Development
Editor
Carlo Carraro
Carlo Carraro
In a common value auction in which the information partitions of the bidders are connected, all rings are core-stable. More precisely, the ex ante expected utilities of rings, at the (noncooperative) sophisticated equilibrium proposed by Einy, Haimanko, Orzach and Sela (Journal of Mathematical Economics, 2002), describe a cooperative game, in characteristic function form, in spite of the underlying strategic externalities. A ring is core-stable if the core of this characteristic function is not empty. Furthermore, every ring can implement its sophisticated equilibrium strategy by means of an incentive compatible mechanism.