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; pay-as-bid auction ; discriminatory auction ; divisible good auction ; oligopoly ; electricity market …
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We show that if limit orders are required to vary smoothly, then strategic (Nash) equilibria of the double auction mechanism yield competitive (Walras) allocations. It is not necessary to have competitors on any side of any market: smooth trading is a substitute for price wars. In particular,...
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design. The model has many applications, including rent seeking, R&D, oligopoly, public goods provision, and tragedy of the …
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