טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentSchein Irena
SubjectBayesian Analysis of Sequential Auctions under Future
Uncertainties
DepartmentDepartment of Industrial Engineering and Management
Supervisor Professor Aharon Ron Lavi
Full Thesis textFull thesis text - English Version


Abstract

Common feature of many markets that employ auction format is an existence of different uncertainty factors presented apart or simultaneously. Different cases of uncertainty lead to different bidding behavior and consequently, result in different outcomes. This study investigates the formation of bids and prices in sequential first-price auctions in presence of uncertainty about realization of future rounds. This auction format is widely accepted in markets with sequential auctions. The risk-neutral subgame perfect Nash equilibrium strategy of the independent private value model and unit-demand serves as a benchmark. Our study shows that the Bayesian-Nash equilibrium exists and that prices decline with the presence of an uncertainty.