Non-Price Equilibria in Markets of Discrete Goods

@inproceedings{Hassidim2011NonPriceEI,
  title={Non-Price Equilibria in Markets of Discrete Goods},
  author={Avinatan Hassidim and Haim Kaplan and Yishay Mansour and Noam Nisan},
  booktitle={EC},
  year={2011}
}
We study markets of indivisible items in which price-based (Walrasian) equilibria often do not exist due to the discrete non-convex setting. Instead we consider Nash equilibria of the market viewed as a game, where players bid for items, and where the highest bidder on an item wins it and pays his bid. We first observe that pure Nash-equilibria of this game excatly correspond to price-based equilibiria (and thus need not exist), but that mixed-Nash equilibria always do exist, and we analyze… CONTINUE READING
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