A Correction to Uniqueness in 'Competitive Bidding and Proprietary Information'

Abstract

One of the best known models of auction theory involves an informed bidder competing for a common value object against one or more uninformed bidders. Engelbrecht-Wiggans, Milgrom and Weber (1983) found an equilibrium to the game using very weak assumptions. They also claimed to have proved uniqueness. In this note I show that there is a mistake in their proof of uniqueness and provide a correct proof.