Multi-Unit Open Ascending Price Efficient Auction

Sergei Izmalkov
Assistant Professor of Economics, MIT
50 Memorial Drive, E52-252C
Cambridge, MA 02142
(617) 452-2522

Abstract:
In this paper I present an open ascending price mechanism
that allocates efficiently K identical objects among N
bidders with interdependent values.  The mechanism consists
of a number of sequential English auctions with reentry and
has the following attributes. In each of the individual
auctions all the bidders compete simultaneously in the open
ascending price format. The most distinctive feature of the
mechanism is that winners are determined first, and then
additional auxiliary auctions are conducted to determine
prices. Total number of auctions depends only on the number
of goods to be allocated and not on the number of bidders.