Liquidity provision vs. deposit insurance: preventing bank panics without moral hazard |
| |
Authors: | Antoine Martin |
| |
Institution: | (1) Department of Economics, National University of Singapore, 1 Arts Link, AS-2#05-36 Singapore, Singapore |
| |
Abstract: | Equilibrium bidding strategies under most multi-unit auction rules cannot be obtained as closed form expressions. Research in multi-unit auctions has, therefore, depended on implicit characterization of equilibrium strategies using the first-order conditions of the bidders’ expected payoff maximization problem. In this paper we consider the pay-as-bid auction with diminishing marginal values for two units and show that any symmetric equilibrium in continuous strategies has the necessary properties to allow such a characterization. Moreover, any increasing solution to the system of differential equations that is used to characterize the equilibrium strategies describes an equilibrium strategy.Generous suggestions and comments from Richard Engelbrecht-Wiggans, Charles M. Kahn, and an anonymous referee are gratefully acknowledged. |
| |
Keywords: | Multi-unit auctions Pay-as-bid rule |
本文献已被 SpringerLink 等数据库收录! |
|