We study correlated equilibria and coarse equilibria of simple first-price single-item auctions in the simplest auction model of full information. Nash equilibria are known to always yield full efficiency and a revenue that is at least the second-highest value. We prove that the same is true for all correlated equilibria, even those in which agents overbid — i.e., bid above their values.<\/p>\n
Coarse equilibria, in contrast, may yield lower efficiency and revenue.\u00a0 We show that the revenue can be as low as 26% of the second-highest value in a coarse equilibrium, even if agents are assumed not to overbid, and this is tight. We also show that when players do not overbid, the worst-case bound on social welfare at coarse equilibrium improves from 63% of the highest value to 81%, and this bound is tight as well.<\/p>\n","protected":false},"excerpt":{"rendered":"
We study correlated equilibria and coarse equilibria of simple first-price single-item auctions in the simplest auction model of full information. Nash equilibria are known to always yield full efficiency and a revenue that is at least the second-highest value. We prove that the same is true for all correlated equilibria, even those in which agents […]<\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"msr-url-field":"","msr-podcast-episode":"","msrModifiedDate":"","msrModifiedDateEnabled":false,"ep_exclude_from_search":false,"_classifai_error":"","footnotes":""},"msr-content-type":[3],"msr-research-highlight":[],"research-area":[13548],"msr-publication-type":[193716],"msr-product-type":[],"msr-focus-area":[],"msr-platform":[],"msr-download-source":[],"msr-locale":[268875],"msr-post-option":[],"msr-field-of-study":[],"msr-conference":[],"msr-journal":[],"msr-impact-theme":[],"msr-pillar":[],"class_list":["post-347981","msr-research-item","type-msr-research-item","status-publish","hentry","msr-research-area-economics","msr-locale-en_us"],"msr_publishername":"","msr_edition":"The 12th Conference on Web and Internet Economics (WINE 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