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Journal Article
Efficiency of Large Private Value Auctions
Econometrica
Author(s)
We consider discriminatory and uniform price auctions for multiple identical units of a
good. Players have private values, possibly asymmetrically distributed and for multiple
units. Our setting allows for aggregate uncertainty about demand and supply. In this
setting, equilibria generally will be inefficient. Despite this, we show that such auctions
become arbitrarily close to efficient if they are ‘‘large,’’ and use this to derive an
asymptotic characterization of revenue and bidding behavior.
Date Published:
2001
Citations:
Swinkels, Jeroen. 2001. Efficiency of Large Private Value Auctions. Econometrica. (1)37-68.