Keywords: Common value auctions
Abstract: Although the mathematical foundations of common value auctions
have been well understood since Milgrom & Weber (1982),
equilibrium bidding strategies are computationally complex.
Very few calculated examples can be found in the literature,
and only for highly specialized cases. This paper introduces
two sets of distributional assumptions that are flexible enough
for theoretical and empirical applications and yet permit
straightforward calculation of equilibrium bidding strategies.
Full paper (229 KB PDF)
| Full paper (229 KB Postscript)
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Last update: July 16, 1997