|M.Sc Student||Irena Schein|
|Subject||Bayesian Analysis of Sequential Auctions under Future|
|Department||Department of Industrial Engineering and Management||Supervisor||Professor Lavi Aharon Ron|
|Full Thesis text|
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.