Finding mixed strategy Nash Equilibrium in First Price Sealed Bid Auction with Complete Information The Next CEO of Stack OverflowSecond-Price Sealed-Bid AuctionSecond-price sealed-bid auction uniformly independent with unknown valueWhat is the optimal reserve price in a second price sealed bid auction?Nash equilibrium in first price auctionUniform Distribution and First-Price Sealed BidMinimum bids in first-price auctionQuestion on first and second price sealed bid auctionwhat is the Nash equilibrium in a Third price auction?Finding the Bayes-Nash Equilibrium for First-Price Auction with 2 biddersNash equilibrium in second price sealed-bid auction

When did Lisp start using symbols for arithmetic?

Removing read access from a file

Horror movie/show or scene where a horse creature opens its mouth really wide and devours a man in a stables

Why here is plural "We went to the movies last night."

Term for the "extreme-extension" version of a straw man fallacy?

How to make a software documentation "officially" citable?

Does it take more energy to get to Venus or to Mars?

What makes a siege story/plot interesting?

What is the difference between "behavior" and "behaviour"?

How do we know the LHC results are robust?

How to safely derail a train during transit?

How to Reset Passwords on Multiple Websites Easily?

How do I get the green key off the shelf in the Dobby level of Lego Harry Potter 2?

How to use tikz in fbox?

What is the purpose of the Evocation wizard's Potent Cantrip feature?

Science fiction novels about a solar system spanning civilisation where people change their bodies at will

How do I construct this japanese bowl?

If the heap is initialized for security, then why is the stack uninitialized?

How do I go from 300 unfinished/half written blog posts, to published posts?

Rotate a column

How can I quit an app using Terminal?

MAZDA 3 2006 (UK) - poor acceleration then takes off at 3250 revs

Inappropriate reference requests from Journal reviewers

Solution of this Diophantine Equation



Finding mixed strategy Nash Equilibrium in First Price Sealed Bid Auction with Complete Information



The Next CEO of Stack OverflowSecond-Price Sealed-Bid AuctionSecond-price sealed-bid auction uniformly independent with unknown valueWhat is the optimal reserve price in a second price sealed bid auction?Nash equilibrium in first price auctionUniform Distribution and First-Price Sealed BidMinimum bids in first-price auctionQuestion on first and second price sealed bid auctionwhat is the Nash equilibrium in a Third price auction?Finding the Bayes-Nash Equilibrium for First-Price Auction with 2 biddersNash equilibrium in second price sealed-bid auction










0












$begingroup$


Let we think about $textbfFirst Price Sealed Bid Auction$ in which bidder who offers highest bid wins the object. There are only two bidders in this auction for the simplicity, $I_1$ and $I_2$.



Bids are strategies for the two bidders and bid strategies for two bidders are continious not discrete. Bids are monetary/dollar.



Each bidders valuation for this object is $v_i$ where $i=1,2$. For the simplicity, $v_1>v_2$.



Payoff functions for each bidder is $u_i=(v_i-b_i)$.



Tie breaking rule for this auction is: When two bidders offer same bid $b_1=b_2=b$, then their payoffs are $u_i=dfrac(v_i-b)2$ for $i=1,2$.



The information structure is complete. Namely, valuations and bids are common knowledge for two bidders.



Now, it can be easily seen that there is no pure Nash Equilibrium under these game structure with continious bidding since, in any case, there is a profitable deviation incentive at least for one bidder if the bids are between $v_2leq b_2leq b_1 leq v_1$ or $v_2leq b_1leq b_2 leq v_1$. I do not mention the case in which two bids are above $v_1$ since this is trivial that there is no any type of Nash Equilibrium above this valuation.



My question about the analysis for the mixed stratgegy Nash equilibria. The important point is that since the information structure is complete, there is no type on bidders which any bidder should appoint a belief to the other bidder. For that reason, we cannot find Bayes-Nash Equilibrium. In this regard, I need a help for $textMixed Strategy Nash Equilibria$ analysis in First Price Sealed Bid Auction with Complete Information under these game rules.










share|cite|improve this question









$endgroup$
















    0












    $begingroup$


    Let we think about $textbfFirst Price Sealed Bid Auction$ in which bidder who offers highest bid wins the object. There are only two bidders in this auction for the simplicity, $I_1$ and $I_2$.



    Bids are strategies for the two bidders and bid strategies for two bidders are continious not discrete. Bids are monetary/dollar.



    Each bidders valuation for this object is $v_i$ where $i=1,2$. For the simplicity, $v_1>v_2$.



    Payoff functions for each bidder is $u_i=(v_i-b_i)$.



    Tie breaking rule for this auction is: When two bidders offer same bid $b_1=b_2=b$, then their payoffs are $u_i=dfrac(v_i-b)2$ for $i=1,2$.



    The information structure is complete. Namely, valuations and bids are common knowledge for two bidders.



    Now, it can be easily seen that there is no pure Nash Equilibrium under these game structure with continious bidding since, in any case, there is a profitable deviation incentive at least for one bidder if the bids are between $v_2leq b_2leq b_1 leq v_1$ or $v_2leq b_1leq b_2 leq v_1$. I do not mention the case in which two bids are above $v_1$ since this is trivial that there is no any type of Nash Equilibrium above this valuation.



    My question about the analysis for the mixed stratgegy Nash equilibria. The important point is that since the information structure is complete, there is no type on bidders which any bidder should appoint a belief to the other bidder. For that reason, we cannot find Bayes-Nash Equilibrium. In this regard, I need a help for $textMixed Strategy Nash Equilibria$ analysis in First Price Sealed Bid Auction with Complete Information under these game rules.










    share|cite|improve this question









    $endgroup$














      0












      0








      0





      $begingroup$


      Let we think about $textbfFirst Price Sealed Bid Auction$ in which bidder who offers highest bid wins the object. There are only two bidders in this auction for the simplicity, $I_1$ and $I_2$.



      Bids are strategies for the two bidders and bid strategies for two bidders are continious not discrete. Bids are monetary/dollar.



      Each bidders valuation for this object is $v_i$ where $i=1,2$. For the simplicity, $v_1>v_2$.



      Payoff functions for each bidder is $u_i=(v_i-b_i)$.



      Tie breaking rule for this auction is: When two bidders offer same bid $b_1=b_2=b$, then their payoffs are $u_i=dfrac(v_i-b)2$ for $i=1,2$.



      The information structure is complete. Namely, valuations and bids are common knowledge for two bidders.



      Now, it can be easily seen that there is no pure Nash Equilibrium under these game structure with continious bidding since, in any case, there is a profitable deviation incentive at least for one bidder if the bids are between $v_2leq b_2leq b_1 leq v_1$ or $v_2leq b_1leq b_2 leq v_1$. I do not mention the case in which two bids are above $v_1$ since this is trivial that there is no any type of Nash Equilibrium above this valuation.



      My question about the analysis for the mixed stratgegy Nash equilibria. The important point is that since the information structure is complete, there is no type on bidders which any bidder should appoint a belief to the other bidder. For that reason, we cannot find Bayes-Nash Equilibrium. In this regard, I need a help for $textMixed Strategy Nash Equilibria$ analysis in First Price Sealed Bid Auction with Complete Information under these game rules.










      share|cite|improve this question









      $endgroup$




      Let we think about $textbfFirst Price Sealed Bid Auction$ in which bidder who offers highest bid wins the object. There are only two bidders in this auction for the simplicity, $I_1$ and $I_2$.



      Bids are strategies for the two bidders and bid strategies for two bidders are continious not discrete. Bids are monetary/dollar.



      Each bidders valuation for this object is $v_i$ where $i=1,2$. For the simplicity, $v_1>v_2$.



      Payoff functions for each bidder is $u_i=(v_i-b_i)$.



      Tie breaking rule for this auction is: When two bidders offer same bid $b_1=b_2=b$, then their payoffs are $u_i=dfrac(v_i-b)2$ for $i=1,2$.



      The information structure is complete. Namely, valuations and bids are common knowledge for two bidders.



      Now, it can be easily seen that there is no pure Nash Equilibrium under these game structure with continious bidding since, in any case, there is a profitable deviation incentive at least for one bidder if the bids are between $v_2leq b_2leq b_1 leq v_1$ or $v_2leq b_1leq b_2 leq v_1$. I do not mention the case in which two bids are above $v_1$ since this is trivial that there is no any type of Nash Equilibrium above this valuation.



      My question about the analysis for the mixed stratgegy Nash equilibria. The important point is that since the information structure is complete, there is no type on bidders which any bidder should appoint a belief to the other bidder. For that reason, we cannot find Bayes-Nash Equilibrium. In this regard, I need a help for $textMixed Strategy Nash Equilibria$ analysis in First Price Sealed Bid Auction with Complete Information under these game rules.







      game-theory nash-equilibrium auction-theory






      share|cite|improve this question













      share|cite|improve this question











      share|cite|improve this question




      share|cite|improve this question










      asked Mar 18 at 9:56









      mustafa runyunmustafa runyun

      11




      11




















          0






          active

          oldest

          votes












          Your Answer





          StackExchange.ifUsing("editor", function ()
          return StackExchange.using("mathjaxEditing", function ()
          StackExchange.MarkdownEditor.creationCallbacks.add(function (editor, postfix)
          StackExchange.mathjaxEditing.prepareWmdForMathJax(editor, postfix, [["$", "$"], ["\\(","\\)"]]);
          );
          );
          , "mathjax-editing");

          StackExchange.ready(function()
          var channelOptions =
          tags: "".split(" "),
          id: "69"
          ;
          initTagRenderer("".split(" "), "".split(" "), channelOptions);

          StackExchange.using("externalEditor", function()
          // Have to fire editor after snippets, if snippets enabled
          if (StackExchange.settings.snippets.snippetsEnabled)
          StackExchange.using("snippets", function()
          createEditor();
          );

          else
          createEditor();

          );

          function createEditor()
          StackExchange.prepareEditor(
          heartbeatType: 'answer',
          autoActivateHeartbeat: false,
          convertImagesToLinks: true,
          noModals: true,
          showLowRepImageUploadWarning: true,
          reputationToPostImages: 10,
          bindNavPrevention: true,
          postfix: "",
          imageUploader:
          brandingHtml: "Powered by u003ca class="icon-imgur-white" href="https://imgur.com/"u003eu003c/au003e",
          contentPolicyHtml: "User contributions licensed under u003ca href="https://creativecommons.org/licenses/by-sa/3.0/"u003ecc by-sa 3.0 with attribution requiredu003c/au003e u003ca href="https://stackoverflow.com/legal/content-policy"u003e(content policy)u003c/au003e",
          allowUrls: true
          ,
          noCode: true, onDemand: true,
          discardSelector: ".discard-answer"
          ,immediatelyShowMarkdownHelp:true
          );



          );













          draft saved

          draft discarded


















          StackExchange.ready(
          function ()
          StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmath.stackexchange.com%2fquestions%2f3152604%2ffinding-mixed-strategy-nash-equilibrium-in-first-price-sealed-bid-auction-with-c%23new-answer', 'question_page');

          );

          Post as a guest















          Required, but never shown

























          0






          active

          oldest

          votes








          0






          active

          oldest

          votes









          active

          oldest

          votes






          active

          oldest

          votes















          draft saved

          draft discarded
















































          Thanks for contributing an answer to Mathematics Stack Exchange!


          • Please be sure to answer the question. Provide details and share your research!

          But avoid


          • Asking for help, clarification, or responding to other answers.

          • Making statements based on opinion; back them up with references or personal experience.

          Use MathJax to format equations. MathJax reference.


          To learn more, see our tips on writing great answers.




          draft saved


          draft discarded














          StackExchange.ready(
          function ()
          StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fmath.stackexchange.com%2fquestions%2f3152604%2ffinding-mixed-strategy-nash-equilibrium-in-first-price-sealed-bid-auction-with-c%23new-answer', 'question_page');

          );

          Post as a guest















          Required, but never shown





















































          Required, but never shown














          Required, but never shown












          Required, but never shown







          Required, but never shown

































          Required, but never shown














          Required, but never shown












          Required, but never shown







          Required, but never shown







          Popular posts from this blog

          Moe incest case Sentencing See also References Navigation menu"'Australian Josef Fritzl' fathered four children by daughter""Small town recoils in horror at 'Australian Fritzl' incest case""Victorian rape allegations echo Fritzl case - Just In (Australian Broadcasting Corporation)""Incest father jailed for 22 years""'Australian Fritzl' sentenced to 22 years in prison for abusing daughter for three decades""RSJ v The Queen"

          Who is our nearest planetary neighbor, on average?Santa Claus flies to the South PoleSeven Spheres of Unequal Mass, a weighing problem with a twistDescribe a large integerFast Mental Calculation of $7.5^7$Math in Space (without the help of celebrities)Find the value of $bigstar$: Puzzle 8 - InequalityWho drinks beer while running anyway?A Crucial DeliveryRanking And AverageHow long will my money last at roulette?

          Daza language Contents Vocabulary Phonology References External links Navigation menudaza1242Daza"Dazaga"eeee178086576