Efficiency of Lowest-Unmatched Price Auctions

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Efficiency of Lowest-Unmatched Price Auctions

In Lowest-Unmatched Price Auctions (LUPA) all participants pay a bidding fee and the lowest bid placed by only one participant wins. Many LUPAs do not specify what happens with the item on offer if there is no unmatched bid. The item may remain with the auctioneer which may appear unfair given that the auctioneer collects the bidding fees. We show that in a symmetric Nash equilibrium of a LUPA ...

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ژورنال

عنوان ژورنال: Economics Letters

سال: 2016

ISSN: 0165-1765

DOI: 10.1016/j.econlet.2016.02.012