Ascending auctions and Walrasian equilibrium

We present a family of submodular valuation classes that generalizes gross substitute. We show that Walrasian equilibrium always exist for one class in this family, and there is a natural ascending auction which finds it. We prove some new structural properties on gross-substitute auctions which, in...

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Bibliographic Details
Published in:arXiv.org 2013-07
Main Authors: Ben-Zwi, Oren, Lavi, Ron, Newman, Ilan
Format: Article
Language:English
Subjects:
Economic models
Equilibrium
Substitutes
Online Access:Get full text
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Summary:We present a family of submodular valuation classes that generalizes gross substitute. We show that Walrasian equilibrium always exist for one class in this family, and there is a natural ascending auction which finds it. We prove some new structural properties on gross-substitute auctions which, in turn, show that the known ascending auctions for this class (Gul-Stacchetti and Ausbel) are, in fact, identical. We generalize these two auctions, and provide a simple proof that they terminate in a Walrasian equilibrium.
ISSN:2331-8422