License: Creative Commons Attribution 4.0 International license (CC BY 4.0)
When quoting this document, please refer to the following
DOI: 10.4230/DagSemProc.06461.18
URN: urn:nbn:de:0030-drops-9934
URL: http://dagstuhl.sunsite.rwth-aachen.de/volltexte/2007/993/
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Gerding, Enrico H. ; Dash, Rajdeep K. ; Yuen, David C. K. ; Jennings, Nicholas R.

Optimal Bidding Strategies for Simultaneous Vickrey Auctions with Perfect Substitutes

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06461.DashRajdeep.Paper.993.pdf (0.2 MB)

Abstract

We derive optimal bidding strategies for a global bidder who participates in multiple, simultaneous second-price auctions with perfect substitutes. We prove that, if everyone else bids locally in a single auction, the global bidder should always place non-zero bids in all available auctions, provided there are no budget constraints. With a budget, however, the optimal strategy is to bid locally if this budget is equal or less than the valuation. Furthermore, for a wide range of valuation distributions, we prove that the problem of finding the optimal bids reduces to two dimensions if all auctions are identical. Moreoever, we address markets with both sequential and simultaneous auctions, non-identical auctions, and the allocative efficiency of the market. Finally, by combining analystical and simulation results, we analyse equilibrium strategies in case of several global bidders. However, a stable solution is then only found if there are local bidders as well.

BibTeX - Entry

@InProceedings{gerding_et_al:DagSemProc.06461.18,
  author =	{Gerding, Enrico H. and Dash, Rajdeep K. and Yuen, David C. K. and Jennings, Nicholas R.},
  title =	{{Optimal Bidding Strategies for Simultaneous Vickrey Auctions with Perfect Substitutes}},
  booktitle =	{Negotiation and Market Engineering},
  pages =	{1--8},
  series =	{Dagstuhl Seminar Proceedings (DagSemProc)},
  ISSN =	{1862-4405},
  year =	{2007},
  volume =	{6461},
  editor =	{Nick Jennings and Gregory Kersten and Axel Ockenfels and Christof Weinhardt},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops.dagstuhl.de/opus/volltexte/2007/993},
  URN =		{urn:nbn:de:0030-drops-9934},
  doi =		{10.4230/DagSemProc.06461.18},
  annote =	{Keywords: Bidding strategies, Vickrey Auctions, Perfect Substitutes, Simultaneous Auctions, Budget Constraint, Global Bidder}
}

Keywords: Bidding strategies, Vickrey Auctions, Perfect Substitutes, Simultaneous Auctions, Budget Constraint, Global Bidder
Collection: 06461 - Negotiation and Market Engineering
Issue Date: 2007
Date of publication: 10.05.2007

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