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A Class of Dominance Solvable Common-Value Auctions

Ronald M. Harstad; Dan Levin

University of Houston

Review of Economic Studies 1985

Dominant strategies seldom exist in non-cooperative games. Moulin's concept of a dominance solvable game generalizes, dominant strategy without dramatic loss in appeal. We consider a class of common-value auctions characterized by the property that the maximum of a collection of informative signals is a sufficient statistic for the entire collection. We demonstrate that this class of second-price auctions is dominance solvable.

DOI
10.2307/2297669
Volume
52 (3)
Pages
525
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