Rates of information aggregation in common value auctions (Q1877164): Difference between revisions
From MaRDI portal
ReferenceBot (talk | contribs) Changed an Item |
Set OpenAlex properties. |
||
Property / full work available at URL | |||
Property / full work available at URL: https://doi.org/10.1016/s0022-0531(03)00224-2 / rank | |||
Normal rank | |||
Property / OpenAlex ID | |||
Property / OpenAlex ID: W2117374160 / rank | |||
Normal rank |
Latest revision as of 09:54, 30 July 2024
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Rates of information aggregation in common value auctions |
scientific article |
Statements
Rates of information aggregation in common value auctions (English)
0 references
16 August 2004
0 references
In the paper, two standard types of auctions are considered: the \(k\)-unit uniform-price auction as in [\textit{W. Pesendorfer} and \textit{J. Swinkels}, Econometrica 65, 1247--1281 (1997; Zbl 0887.90052)] and the single unit irrevocable dropout English auction [\textit{P. Milgrom} and \textit{R. Weber}, Econometrica 50, 1089--1122 (1982; Zbl 0487.90017)]. The authors study uniform-price auctions in which \(k\) identical objects of an unknown value are auctioned off to \(n\) bidders, where \(n\), \(k\) are allowed to diverge to infinity and \(\frac{k}{n}\) converges to a number in \([0,1)\). They show that under the Wilson assumptions [\textit{R.Wilson}, Rev. Econ. Stud. 44, 511--518 (1977; Zbl 0373.90012)] the price aggregates the information at a rate proportional to \(\frac{n}{\sqrt{k}}\) and in the Pesendorfer-Swinkels [loc. cit.] framework that the price is proportional to \(\sqrt{k}\). Concerning the English auctions, the results are as follows: in the Wilson setup the rate of information aggregation is proportional to the number of bidders and under the Pesendorfer and Swinkels assumptions that the rate is proportional to the square root of the number of bidders.
0 references
large auctions
0 references
information aggregation
0 references
convergence rates
0 references