[WP-020] Symmetric Equilibrium in Pre-Auction Investment
Author
Daniel Quint, Fuhito Kojima
Abstract
We characterize the symmetric equilibria of a pre-auction game of investment in an internet ad auction environment. For a wide class of auction formats, we show a symmetric equilibrium exists for the pre-auction investment game, is essentially unique, and is the same for all auction formats in the class; we give sufficient conditions for the symmetric equilibrium to be in pure strategies, and to achieve the efficient level of investment.
