Auctions often involve the sale of many related goods: Treasury, spectrum, and electricity auctions are examples. In multi-unit auctions, bids for marginal units may affect payments for inframarginal units, giving rise to “demand reduction” and furthermore to incentives for shading bids...

This paper studies the relative performance of various formats for selling divisible goods. We analyze the two most common auction formats, the uniform price and discriminatory price designs, and contrast them with the Vickrey and the optimal mechanisms. We derive and characterize the unique...

In this paper we develop a framework to study markets with heterogeneous atomic traders. The competitive model is augmented as we provide traders with correct beliefs about their price impacts to define equilibrium with endogenously determined market power and show that such equilibrium exists...