Equilibrium strategy and population-size effects in lowest unique bid auctions
Simone Pigolotti 1, 2, Sebastian Bernhardsson 1, 3, Jeppe Juul 1, Gorm Galster 1, Pierpaolo Vivo 4 Physical Review Letters 108 (2012) 088701 In lowest unique bid auctions, $N$ players bid for an item. The winner is whoever places the \emph{lowest} bid, provided that it is also unique. We use a grand canonical approach to derive an analytical expression for the equilibrium distribution of strategies. We then […]
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