Working Paper No. 814

Mixed Strategies in Discriminatory Divisible-good Auctions

Published: November 24, 2009, revised April 2010Pages: 71Keywords: Pay-as-bid Auction; Divisible Good Auction; Mixed Strategy Equilibria; Wholesale Electricity MarketsJEL-codes: D43; D44; C72
Published version

Mixed Strategies in Discriminatory Divisible-good Auctions Edward J. Anderson, Pär Holmberg and Andrew B. Philpott


Using the concept of market-distribution functions, we derive general optimality conditions for discriminatory divisible-good auctions, which are also applicable to Bertrand games and non-linear pricing. We introduce the concept of o¤er distribution function to analyze randomized offer curves, and characterize mixed-strategy Nash equilibria for pay-as-bid auctions where demand is uncertain and costs are common knowledge; a setting for which pure-strategy supply function equilibria typically do not exist. We generalize previous results on mixtures over horizontal offers as in Bertrand-Edgeworth games, and we also characterize novel mixtures over partly increasing supply functions.
 

Pär Holmberg

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Global index of the sharing economy

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Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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