EQUILIBRIUM BIDDING WITHOUT THE INDEPENDENCE AXIOM: A GRAPHICAL ANALYSIS

摘要

In this paper we examine optimal bidding without the independence axion in a unified framework which allows for a clear graphical representation. Thus, we can show very simply the independence axiom to be a necessary and suf- Ficient condition on preferences for strategical equivalence of the two first-price And second-price auctions, respectively, and for the second-price sealed-bid auc- Tion to be demand revealing.