Working Papers,
Copenhagen Business School, Department of Economics

Abstract: This paper examines the effect of bid regulations on the range of potential equilibrium prices in a multi-unit uniform price auction with heterogenous bidders. General bid caps destroy equilibria with prices above the bid cap and create new equilibria with prices way below the cap. A cap only for larger firms does not guarantee market prices below that cap. A sufficiently high bid floor only for smaller firms destroys some or all pure strategy equilibria despite their prices being above the bid floor. With a general bid floor this happens only with considerably higher bid floors.

Keywords: Multi-unit Auctions; Heterogenous Bidders; Bid Regulation

JEL-codes: D43; D44; L12; L13; L51

38 pages, December 1, 2016

Full text files

9409  Full text

Download statistics

• Copenhagen Business School, Department of Economics
• Ordering Working Papers
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Lars Nondal ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:cbsnow:2016_001This page generated on 2024-12-21 04:36:12.