Abstract
In a single-item auction with agents having general preferences, first-price auctions are axiomatically characterized. In this study, we characterize first-price auctions by Pareto efficiency, individual rationality, anonymity in welfare, and non-bossiness in welfare. The first three properties are satisfied by second-price auctions. Considering the well-known fact that second-price auctions are strategy-proof, a clear distinction between first- and second-price auctions is reducible to the difference between non-bossiness and strategy-proofness, both of which are important properties with respect to agents’ strategic behavior. In the characterization, anonymity in welfare can be replaced by envy-freeness, which is also a basic property related to equity among agents. Furthermore, in our characterization, each of the properties, Pareto efficiency, individual rationality, and non-bossiness in welfare, is independent, and domains on which first-price auctions are characterized without equity properties are specified. By strengthening non-bossiness, we characterize first-price auctions by a weaker equity property called equal welfare to equals.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
