We introduce the concept of an offer distribution function to analyze randomized offer curves in multiunit procurement auctions. We 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 also characterize novel mixtures over partly increasing supply functions. We show that the randomization can cause considerable production inefficiencies.
Referens:
Anderson, Edward J., Pär Holmberg och Andrew B. Philpott (2013),
"Mixed Strategies in Discriminatory Divisible-good Auctions".
RAND Journal of Economics
44(1),
1–32.