A Pro-Competitive Effect of Joint Bidding in Multi-Unit Uniform Price Auction with Asymmetric Bidders

This paper studies a pro-competitive effect of joint bidding in multi-unit uniform price auctions where bidders have private values and demand different quantities of units. We analyze a simple model with three identical items for sale, two small bidders each demanding a single unit, and a big bidder demanding two units. We show that joint bidding of the two small bidders, which recovers the symmetry of bidders, enhances competition among the bidders and increases efficiency and revenue of the auction

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