This paper analyzes the Bayesian-Nash equilibrium of a package auction under incomplete information. We consider the ascending proxy auction with single-minded bidders. A single-minded bidder is interested in a unique bundle of goods and submits bids only for that bundle. We first provide a...

This paper considers a class of combinatorial auctions with ascending prices, which includes the Vickrey-Clarke-Groves mechanism and core-selecting auctions. In every ascending auction, the Vickrey-target strategy, i.e., bidding up to the Vickrey price based on provisional valuations,...

This paper characterizes the perfect Bayesian equilibrium in an ascending price package auction. Bidders play history-dependent strategies in an ascending auction, and we show that it leads to serious underbidding. We suppose that there are 2 objects and 3 bidders: 2 local and 1 global bidders....

This paper considers a general package auction problem and a class of payment rules we refer to as standard. In a “standard” pricing rule, each winner pays at least his “minimum required value” to win. The minimum required value coincides with the payment in the Vickrey auction, and...

This study considers revenue-optimal auction design for two ordered substitutes, such as positions or priorities. Bidders have a two-dimensional type about a valuation for the top position and a discount rate of the second position for the top. An auction mechanism is dominant-strategy incentive...