On the Failure of the Linkage Principle in Multi-unit Auctions

Motty Perry; Philip J. Reny

doi:10.1111/1468-0262.00056

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Econometrica Vol. 67 No. 4 1999

On the Failure of the Linkage Principle in Multi-unit Auctions

Motty Perry¹; Philip J. Reny²

¹ Hebrew University of Jerusalem · ² University of Pittsburgh

Abstract

It is shown that the linkage principle (Milgrom and Weber (1982)) does not extend to the multi-unit auction setting. An analysis of the equilibium bidding strategies is carried out for the general two-agent/two-unit Vickrey auction in order to provide economic insight into the nature of the failure.

DOI: 10.1111/1468-0262.00056
Volume: 67
Issue: 4
Pages: 895-900
Language: en
Sources: bibtex:phds-export.bib crossref openalex

On the Failure of the Linkage Principle in Multi-unit Auctions

Abstract

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