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URN: urn:nbn:de:0030-drops-9934
URL: http://drops.dagstuhl.de/opus/volltexte/2007/993/
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Gerding, Enrico H. ; Dash, Rajdeep K. ; Yuen, David C. K. ; Jennings, Nicholas R.

Optimal Bidding Strategies for Simultaneous Vickrey Auctions with Perfect Substitutes

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Abstract

We derive optimal bidding strategies for a global bidder who participates in multiple, simultaneous second-price auctions with perfect substitutes. We prove that, if everyone else bids locally in a single auction, the global bidder should always place non-zero bids in all available auctions, provided there are no budget constraints. With a budget, however, the optimal strategy is to bid locally if this budget is equal or less than the valuation. Furthermore, for a wide range of valuation distributions, we prove that the problem of finding the optimal bids reduces to two dimensions if all auctions are identical. Moreoever, we address markets with both sequential and simultaneous auctions, non-identical auctions, and the allocative efficiency of the market. Finally, by combining analystical and simulation results, we analyse equilibrium strategies in case of several global bidders. However, a stable solution is then only found if there are local bidders as well.

BibTeX - Entry

@InProceedings{gerding_et_al:DSP:2007:993,
  author =	{Enrico H. Gerding and Rajdeep K. Dash and David C. K. Yuen and Nicholas R. Jennings},
  title =	{Optimal Bidding Strategies for Simultaneous Vickrey Auctions with Perfect Substitutes},
  booktitle =	{Negotiation and Market Engineering},
  year =	{2007},
  editor =	{Nick Jennings and Gregory Kersten and Axel Ockenfels and Christof Weinhardt },
  number =	{06461},
  series =	{Dagstuhl Seminar Proceedings},
  ISSN =	{1862-4405},
  publisher =	{Internationales Begegnungs- und Forschungszentrum f{\"u}r Informatik (IBFI), Schloss Dagstuhl, Germany},
  address =	{Dagstuhl, Germany},
  URL =		{http://drops.dagstuhl.de/opus/volltexte/2007/993},
  annote =	{Keywords: Bidding strategies, Vickrey Auctions, Perfect Substitutes, Simultaneous Auctions, Budget Constraint, Global Bidder}
}

Keywords: Bidding strategies, Vickrey Auctions, Perfect Substitutes, Simultaneous Auctions, Budget Constraint, Global Bidder
Seminar: 06461 - Negotiation and Market Engineering
Issue Date: 2007
Date of publication: 10.05.2007


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