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An Approximate Auction

Ingebretsen Carlson, Jim LU (2015) In Working Paper / Department of Economics, School of Economics and Management, Lund University
Abstract
This paper presents an auction procedure which is of particular interest when short execution times are of importance. It is based on a method for approximating the bidders' preferences over two types of items when complementarity between the two may exist. In particular, linear approximations of the bidders' indifference curves are made. The resulting approximated preference relation is shown to be complete and transitive at any given price vector. It is shown that an approximated Walrasian equilibrium always exists if the approximated preferences of the bidders comply with the gross substitutes condition. Said condition also ensures that the set of approximated equilibrium prices forms a complete lattice. A process is proposed which is... (More)
This paper presents an auction procedure which is of particular interest when short execution times are of importance. It is based on a method for approximating the bidders' preferences over two types of items when complementarity between the two may exist. In particular, linear approximations of the bidders' indifference curves are made. The resulting approximated preference relation is shown to be complete and transitive at any given price vector. It is shown that an approximated Walrasian equilibrium always exists if the approximated preferences of the bidders comply with the gross substitutes condition. Said condition also ensures that the set of approximated equilibrium prices forms a complete lattice. A process is proposed which is shown to always reach the smallest approximated Walrasian price vector. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
Approximate auction, one-round auction, non-quasi-linear preferences, approximated preferences
in
Working Paper / Department of Economics, School of Economics and Management, Lund University
issue
19
pages
28 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
a1a28afe-00c6-4312-895e-8db95cf55bae (old id 7442984)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2015_019.htm
date added to LUP
2015-06-24 09:26:51
date last changed
2016-04-16 10:09:07
@misc{a1a28afe-00c6-4312-895e-8db95cf55bae,
  abstract     = {This paper presents an auction procedure which is of particular interest when short execution times are of importance. It is based on a method for approximating the bidders' preferences over two types of items when complementarity between the two may exist. In particular, linear approximations of the bidders' indifference curves are made. The resulting approximated preference relation is shown to be complete and transitive at any given price vector. It is shown that an approximated Walrasian equilibrium always exists if the approximated preferences of the bidders comply with the gross substitutes condition. Said condition also ensures that the set of approximated equilibrium prices forms a complete lattice. A process is proposed which is shown to always reach the smallest approximated Walrasian price vector.},
  author       = {Ingebretsen Carlson, Jim},
  keyword      = {Approximate auction,one-round auction,non-quasi-linear preferences,approximated preferences},
  language     = {eng},
  note         = {Working Paper},
  number       = {19},
  pages        = {28},
  publisher    = {Department of Economics, Lund Universtiy},
  series       = {Working Paper / Department of Economics, School of Economics and Management, Lund University},
  title        = {An Approximate Auction},
  year         = {2015},
}