Citation:
Reny, Motty Perry, and Philip J. “On The Failure Of The Linkage Principle In Multi-Unit Auctions”. Discussion Papers 1997. Web.
Abstract:
It is shown that the linkage principle (Milgrom and Weber(1982)) does not extend to the multi-unit auction setting. An analysis of the equilibium bidding strategies is carried out for the gneral two-agent/two-unit Vickrey auction in order to provide economic insight into the nature of the failure. In addition, an explicit counterexample is provided.