The ` Shill Bidding E ect ' versus the ` Linkage Principle ' ∗ Laurent Lamy † 11 th February 2006
نویسنده
چکیده
The analysis of second price auctions with externalities is utterly modi ed if the seller is unable to commit not to participate in the mechanism. For the General Symmetric Model (Milgrom and Weber [20]) and standard auction formats, we charaterize the full set of symmetric pure strategy equilibria with shill bids from the seller (using possibly mixed strategy) and compare those equilibria to the optimal one with the ability to commit not to use shill bids. The bene ts from the highlighted `Linkage Principle' are counterbalanced by the `Shill Bidding E ect' which grows with the winner's curse.
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تاریخ انتشار 2006