Auctions with multi-member bidders
I consider an auction in which one of the bidders is a team consisting of several individuals. These individuals need to agree on a bid, and on splitting the payment to the auctioneer if they win the item. Under some conditions, a unique equilibrium is obtained under either a first-price or a second-price format. Under more permissive conditions the equilibrium need not be unique, but the symmetric equilibria of the first-price model are isomorphic to the symmetric equilibria of the second-price model. The free riding problem which stems from collective bidding is studied in detail.
תאריך עדכון אחרון : 15/05/2022