Inefficient ex-post equilibria in efficient auctions
- Cite this article as:
- Birulin, O. Econ Theory (2003) 22: 675. doi:10.1007/s00199-002-0317-4
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I consider a single-object English auction with two asymmetric bidders and show that it has a continuum of inefficient undominated ex-post equilibria. The result extends for the generalized VCG mechanism, Dasgupta-Maskin auction and, generally, for every auction that has an efficient ex-post equilibrium.