Retaliatory Equilibria in a Japanese Ascending Auction for Multiple Objects

G. Albano, F. Germano, S. LOVO

Review of Economic Design

April 2006, vol. 10, n°1, pp.1-8

Departments: Finance, GREGHEC (CNRS)

We construct a family of retaliatory equilibria for the Japanese ascending auction for multiple objects and show that, while it is immune to many of the tacitly collusive equilibria studied in the literature, it is not entirely immune when some bidders are commonly known to be interested in a specific objectKeywords Ascending auctions for multiple objects - Clock auctions - FCC auctions - Collusion - Retaliation