Abstract
We consider a game corresponding to the uniform price supply function auction for a homogenous good. We present best response dynamics analysis for a repeated auction game and show that under a linear marginal cost function, it converges to the SFE with a geometric rate. However, for a fixed marginal cost and limited production capacity, the best reply may not exist at some step so the dynamics does not converge to SFE in general.
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Vasin, A., Dolmatova, M. (2014). Does SFE Correspond to Expected Behavior in the Uniform Price Auction?. In: Helber, S., et al. Operations Research Proceedings 2012. Operations Research Proceedings. Springer, Cham. https://doi.org/10.1007/978-3-319-00795-3_34
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DOI: https://doi.org/10.1007/978-3-319-00795-3_34
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