Declining valuations in sequential auctions

  title={Declining valuations in sequential auctions},
  author={Thomas Kittsteiner and J{\"o}rg Nikutta and Eyal Winter},
  journal={International Journal of Game Theory},
Abstract.We analyze an independent private values model where a number of objects are sold in sequential first- and second-price auctions. Bidders have unit demand and their valuation for an object is decreasing in the rank number of the auction in which it is sold. We derive efficient equilibria if prices are announced after each auction or if no information is given to bidders. We show that the sequence of prices constitutes a supermartingale. Even if we correct for the decrease in valuations… CONTINUE READING

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