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Non-Existence of Equilibrium in Vickrey, Second-Price, and English
Paper Number: 1241
Date: 11/01/2005
Abstract:
A simple example shows that equilibria can fail to exist in second price (Vickrey) and English auctions when there are both common and private components to bidders' valuations and private information is held on both dimensions. The example shows that equilibrium only exists in the extremes of pure private and pure common values, and that existence in standard models is not robust to a slight perturbation.
Paper Length: 8 pages
Paper: wp1241.pdf