Journal article
On nondegenerate equilibria of double auctions with several buyers and a price floor
Economic theory, Vol.73(2-3), pp.625-654
04/01/2022
DOI: 10.1007/s00199-021-01372-7
Abstract
This paper investigates the existence of a nondegenerate pure-strategy Bayesian-Nash equilibrium in a double auction between one seller and several heterogeneous buyers in the independent private value framework. It begins with three examples describing some of the model's particular features. After studying a number of continuity-related properties of the interim payoff functions, we construct a sequence of strategy profiles that converges to a nondegenerate monotone Bayesian-Nash equilibrium of the game under some strict monotonicity conditions. The equilibrium existence result is applied to a double auction with risk-averse bidders.
Details
- Title: Subtitle
- On nondegenerate equilibria of double auctions with several buyers and a price floor
- Creators
- Pavlo Prokopovych - Kyiv School of EconomicsNicholas C. Yannelis - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Economic theory, Vol.73(2-3), pp.625-654
- Publisher
- Springer Nature
- DOI
- 10.1007/s00199-021-01372-7
- ISSN
- 0938-2259
- eISSN
- 1432-0479
- Number of pages
- 30
- Language
- English
- Date published
- 04/01/2022
- Academic Unit
- Economics
- Record Identifier
- 9984380413102771
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