Accession Number:

ADA073029

Title:

On the Non-Existence of Multiplicative Equilibrium Bidding Strategies,

Descriptive Note:

Corporate Author:

YALE UNIV NEW HAVEN CT COWLES FOUNDATION FOR RESEARCH IN ECONOMICS

Report Date:

1979-04-18

Pagination or Media Count:

12.0

Abstract:

Extensive use has been made of multiplicative bidding strategies in the literature relating to auctions of mineral leases. It is shown that, generally, multiplicative strategies are not in equilibrium. It is also established that an equilibrium bidding strategy is not a function merely of a sufficient statistic for the true value, or of any other of a class of related statistics, if an individual bidder observes more than one piece of information. The general insufficiency of a single simple statistic is briefly discussed and a special class of models is identified in which a single simple statistic is indeed strategically sufficient. Author

Subject Categories:

  • Economics and Cost Analysis
  • Statistics and Probability

Distribution Statement:

APPROVED FOR PUBLIC RELEASE