In almost common value auctions, even a very small private payoff advantage is usually supposed to have an explosive effect on the outcomes in a second-price se

This paper considers the problem of equilibrium selection in a common-value second-price auction with two bidders. We show that for each ex post equilibrium in

Game Theory and Exercises introduces the main concepts of game theory, along with interactive exercises to aid readers’ learning and understanding. Game theor

An invaluable account of how auctions work—and how to make them work Few forms of market exchange intrigue economists as do auctions, whose theoretical and pr