In auctions with externalities, it is well-known that the core can be empty, which is undesirable both in terms of …

In auctions with externalities, the core can be empty, which is undesirable both in terms of stability and fairness. We …

We propose a semi-cooperative game theoretic approach to check whether a given coalition is stable in a Bayesian game …) coalitional equilibrium, describe a (cooperative) partition form game. A coalition is core-stable if the core of a suitable … which the bidders' final utility possibly depends on the winner's identity. We show that such direct externalities offer a …

-pay auction with complete information and identity-dependent externalities. This condition shows that the generic equilibrium of … the standard all-pay auction is robust to the introduction of "small" identity-dependent externalities. In general …, however, the presence of identity-dependent externalities invalidates well-established qualitative results concerning the set …