The non-existence of equilibrium in sequential auctions when bids are revealed.

Date

2011-10-25

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Abstract

Sequential auctions of homogeneous objects are common in public and private marketplaces. Weber derived equilibrium results for what is now a classic model of sequential auctions. However, Weber’s results are derived in the context of two particular price quote assumptions. In this paper, we examine a model of sequential auctions based on online auctions, in which, after each auction, all bids are revealed. We show that a pure-strategic, symmetric equilibrium does not exist, regardless of whether the auctions are first- or second-price, if all bids are revealed at the end of each auction.

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Keywords

Sequential auctions, Online auctions, E-commerce, Nash equilibrium

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