Revenue and Efficiency in UniformMPrice Private ... - Editorial Express

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reservation price above f in the uniform0price auction. ... of initial and subsequent units as GБ EvБ and G2 Ev2 , and their densities as. gБ EvБ and g2 Ev2 . ... If less than & n Б bids are submitted above or equal to the reservation price R, then ..... general formula for the mean value of Uloss is shown below (4.2) and can be.
Revenue and Efficiency in Uniform-Price Private Value Auctions By Michal Bresky∗ This paper shows that in a private value multi-unit uniform-price auction, the reservation price increases both the efficiency and revenue. In equilibrium the difference between the true value of a unit and the submitted bid is different for each unit; therefore, the seller cannot allocate units efficiently. When the seller increases the reservation price, the bidders increase their bids on the units with a larger difference between the value and bid more. Some bidders with a low value do not participate in the auction. Therefore the units are allocated among those with high initial and subsequent values that is efficient. For a low range of reservation prices is, the higher the reservation price the higher the expected efficiency and revenue. Keywords: multi-unit auction, multiple-object auction, market efÞciency, optimal selling mechanism, discriminatory and uniform price independent-private value auction with reservation price. JEL ClassiÞcation D44.



I would like to thank Philip Reny, Avner Shaked, Viatcheslav Vinogradov, Michal

Kejak and Jan Hanousek for their helpful comments. I would appreciate any comments that you can sent to [email protected].

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