Analysis of discrete multi-unit, common value auctions: a study of three sealed-bid mechanisms

Joakim Ahlberg

This paper proposes a discrete bidding model for both quantities and pricing. It has a two-unit demand environment where subjects bid for contracts with an unknown redemption value, common to all bidders. Prior to bidding, the bidders receive private signals of information on the (common) value. The value and the signals are drawn from a known discrete affiliated joint distribution. The relevant task for the paper is to compare the equilibrium strategies and the seller’s revenue of three auction formats. We find that, of the three auctionformats below with two players, the discriminatory auction always gives the largest revenue to the seller; both the uniform and the Vickrey auction have zero revenue equilibrium strategies that put them further down in the revenue ranking. In equilibrium, bidders bid the same amount on both items in the discriminatory auction; a phenomenon not noted in either of the other auction formats.



Cost Benefit Analysis (CBA) workshop in Stockholm

An open seminar and workshop in Stockholm will be held on 25-26 April 2018. The workshop deals with the use of CBA as a basis for decision-making in the public sector. The workshop is organized by, among others, Professor Jan-Eric Nilsson, VTI.



Ulf Sandberg has been presented with the TTI Lifetime Achievement Award 2018

VTI’s Senior Research Leader Ulf Sandberg has been presented with the TTI Lifetime Achievement Award 2018 for his work on research into tyres and road surface.


Steps need to be taken to increase traffic safety of automated cars

Several steps are necessary to ensure that automated and connected cars will lead to increased traffic safety – everything from ensuring that technology takes vulnerable road users into account, to new forms of driver training. This has emerged in a position...


FALCON examines challenges in the transport sector

VTI is one of several important partners in the major FALCON project*, whose purpose is to create knowledge and insight regarding the transport sector. In an initial subproject, VTI has produced a manual on transport, logistics and multimodality.


VTI joined research cooperation in China

In December 2017 VTI became a member of China-Sweden Research Centre for Traffic Safety (CTS).


Swedish German research collaboration on Electric Road Systems

The project “Swedish-German research collaboration on Electric Road Systems” (CollERS) has now officially started. The goal of the project is to increase the common knowledge around Electric Road Systems by cooperation between Germany and Sweden and to...


Electric Road Systems Conference 2018

After a successful first conference in June 2017, the Swedish research and innovation platform for electric roads is arranging the second dedicated International Conference on Electric Road Systems (ERS) June 13th and 14th 2018.