Powered by OpenAIRE graph
Found an issue? Give us feedback
image/svg+xml art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos Open Access logo, converted into svg, designed by PLoS. This version with transparent background. http://commons.wikimedia.org/wiki/File:Open_Access_logo_PLoS_white.svg art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos http://www.plos.org/ DROPS - Dagstuhl Res...arrow_drop_down
image/svg+xml art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos Open Access logo, converted into svg, designed by PLoS. This version with transparent background. http://commons.wikimedia.org/wiki/File:Open_Access_logo_PLoS_white.svg art designer at PLoS, modified by Wikipedia users Nina, Beao, JakobVoss, and AnonMoos http://www.plos.org/
https://dx.doi.org/10.4230/dag...
Article . 2005
License: CC BY
Data sources: Datacite
DBLP
Conference object . 2019
Data sources: DBLP
DBLP
Conference object . 2018
Data sources: DBLP
versions View all 4 versions
addClaim

Spiteful Bidding in Sealed-Bid Auctions

Authors: Brandt, Felix; Sandholm, Tuomas; Shoham, Yoav;

Spiteful Bidding in Sealed-Bid Auctions

Abstract

We study the bidding behavior of spiteful agents who, contrary to the common assumption of self-interest, maximize the weighted difference of their own profit and their competitors' profit. This assumption is motivated by inherent spitefulness, or, for example, by competitive scenarios such as in closed markets where the loss of a competitor will likely result in future gains for oneself. We derive symmetric Bayes Nash equilibria for spiteful agents in first-price and second-price sealed-bid auctions. In first-price auctions, bidders become "more truthful" the more spiteful they are. Surprisingly, the equilibrium strategy in second-price auctions does not depend on the number of bidders. Based on these equilibria, we compare revenue in both auction types. It turns out that expected revenue in second-price auctions is higher than expected revenue in first-price auctions whenever agents have the slightest interest in reducing others' profit as long as they still care for their own profit. In other words, revenue equivalence only holds for auctions in which all agents are either self-interested or completely malicious.

Country
Germany
Keywords

Spite, 330, Auctions, Externalities, Revenue, 004

  • BIP!
    Impact byBIP!
    selected citations
    These citations are derived from selected sources.
    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    0
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Average
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Average
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Average
Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green