Onderstal, Sander; Englmaier, Florian; Guillen, Pablo; … - Fondazione ENI Enrico Mattei (FEEM) - 2004
Multi-unit auctions are sometimes plagued by the so-called exposure problem. In this paper, we analyze a simple game … called the ‘chopstick auction’ in which bidders are confronted with the exposure problem. We analyze the chopstick auction … efficient equilibrium and is revenue equivalent with the second-price sealed-bid auction in which the exposure problem is not …