Existence of Equilibria in Auctions with Private Values

Existence of Equilibria in Auctions with Private Values

By Srihari Govindan, Robert Wilson
2010Working Paper No. 2056

A first-price sealed-bid auction of an item for which bidders are risk-neutral and have privately known values is shown to have an equilibrium in mixed behavioral strategies if the joint distribution of bidders' values has a continuous density on a cubical support. Such an equilibrium has atomless distributions of bids and is not affected by the rule for resolving tied bids.

Keywords
auctions