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Elliot Lipnowski
@elliotlip.bsky.social
To be specific, in the Dawes, Tomes, Mousely, Grubbs Fidelity Fiduciary Bank. elliotlipnowski.com/
551 followers151 following161 posts
ELelliotlip.bsky.social

This example is a bit silly, though, because it loses two of the main desiderata of 2PAs: First, we've lost dominance: A bidder's willingness to bid as described in the bunching regions relies on the other bidder's complementary weird behavior there.

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ELelliotlip.bsky.social

Second, we've lost some simplicity: Whereas the auction format only amounts to setting a reserve price, the desired equilibrium now depends in a detailed way on the type distributions.

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Elliot Lipnowski
@elliotlip.bsky.social
To be specific, in the Dawes, Tomes, Mousely, Grubbs Fidelity Fiduciary Bank. elliotlipnowski.com/
551 followers151 following161 posts