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Equilibrium Bidding in Copula Models of First Price Auctions
Keyword(s): auctions; equilibrium bidding strategies; affiliation; copulae
Abstract: We present a model of sealed-bid first-price auctions with affiliated private values (APV) where dependence of valuations is represented by a copula. We derive the equilibrium bidding strategies in a symmetric model with risk-neutral and risk-averse bidders.
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