auctions in a symmetric oligopoly with capacity constrained firms. Under both the Market Clearing and Maximum Accepted Price … discriminatory auction. Moreover, capacity withholding may be necessary to sustain this out-come. We extend these results to the case …

non-convexities, randomization emerges as a theoretic possibility. In characterizing market equilibria we show that … other hand, external effects may have critical implications for market efficiency. With adverse selection, in fact, cross …-subsidization across agents with different private information may be necessary for optimality, and so, the market need not even achieve an …