information revelation and random entry in sequential ascending auctions
I develop an infinite-horizon model of a market in which new buyers and sellers arrive probabilistically. Upon arrival, each seller offers a single good for sale via an ascending auction. Buyers are endowed with private values and single-unit demand, and remain present on the market until they transact. I characterize a symmetric and efficient equilibrium for this game, accounting for the endogenous options created by the sequential nature of the market and the informational asymmetries introduced by new entrants. I then show the equivalence between the sequential ascending auction and the dynamic generalizations of the Vickrey-Clarke-Groves mechanism studied in [1, 2].
information revelation sequential ascending auctions random arrivals dynamic vickrey-clarke-groves mechanism