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DAGSTUHL
2006

Optimal Bidding Strategies for Simultaneous Vickrey Auctions with Perfect Substitutes

13 years 5 months ago
Optimal Bidding Strategies for Simultaneous Vickrey Auctions with Perfect Substitutes
In this paper, we derive optimal bidding strategies for a global bidder who participates in multiple, simultaneous second-price auctions with perfect substitutes. We first consider a model where all other bidders are local and participate in a single auction. For this case, we prove that, assuming free disposal, the global bidder should always place non-zero bids in all available auctions, irrespective of the local bidders' valuation distribution. Furthermore, for nondecreasing valuation distributions, we prove that the problem of finding the optimal bids reduces to two dimensions. These results hold both in the case where the number of local bidders is known and when this number is determined by a Poisson distribution. In addition, by combining analytical and simulation results, we demonstrate that similar results hold in the case of several global bidders, provided that the market consists of both global and local bidders. Finally, we address the efficiency of the overall marke...
Enrico H. Gerding, Rajdeep K. Dash, David C. K. Yu
Added 30 Oct 2010
Updated 30 Oct 2010
Type Conference
Year 2006
Where DAGSTUHL
Authors Enrico H. Gerding, Rajdeep K. Dash, David C. K. Yuen, Nicholas R. Jennings
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