Citation:
Reny, M. P., & J., P. . (1997). On The Failure of the Linkage Principle in Multi-Unit Auctions. Discussion Papers. presented at the 9, Econometrica 67 (1999), 895-900. Retrieved from '
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.