@misc{ahunbay2020two-buyer,
author = {Ahunbay, Mete S¸eref and Lucier, Brendan and Vetta, Adrian},
title = {Two-Buyer Sequential Multiunit Auctions with No Overbidding},
howpublished = {ArXiv},
year = {2020},
month = {June},
abstract = {We study equilibria in two-buyer sequential second-price (or first-price) auctions for identical goods. Buyers have weakly decreasing incremental values, and we make a behavioural no-overbidding assumption: the buyers do not bid above their incremental values. Structurally, we show equilibria are intrinsically linked to a greedy bidding strategy. We then prove three results. First, any equilibrium consists of three phases: a competitive phase, a competition reduction phase and a monopsony phase. In particular, there is a time after which one buyer exhibits monopsonistic behaviours. Second, the declining price anomaly holds: prices weakly decrease over time at any equilibrium in the no-overbidding game, a fact previously known for equilibria with overbidding. Third, the price of anarchy of the sequential auction is exactly 1 − 1/e.},
url = {http://approjects.co.za/?big=en-us/research/publication/two-buyer-sequential-multiunit-auctions-with-no-overbidding/},
}