Equilibrium solutions of an auction game related to the model of privatization of indivisible boons under conditions of corruption (Q1594259): Difference between revisions

The authors consider a model of privatization of objects of state property by an auction, which is conducted by corrupt officials. The model and strategies are defined in the form of a game between a finite number of participants-buyers and a one bureaucrat-seller. A solution of the game is defined as an equilibrium which balance: (A) the interests of different participants in their competition for objects, and (B) the interests of the participants and the bureaucrat. Assuming a number of assumptions the authors proved that an equilibrium exists, and it is unique under additional assumptions. Reviewer's remark: It seems that by the authors V-th assumption a participant with lower resources has an advantage over the other participants with higher resources.