fbpx A Computational Framework for Analyzing Dynamic Procurement Auctions: The Market Impact of Information Sharing | Harvard Kennedy School


  • Ariel Pakes


June 20, 2018, Paper: "This paper develops a computational framework to analyze dynamic auctions. We modify the Experience Based Equilibrium concept to account for dynamic auctions and add, and then operationalize a boundary consistent condition which mitigates the extent of multiple equilibria that can arise in Experience Based Equilibria. Our example shows that allowing for the dynamics implicit in many auction environments is important in that it enables the emergence of equilibrium states that can only be reached when firms are responding to dynamic incentives. It also shows that the impact of information sharing can depend crucially on the extent of dynamics and suggests that information sharing, even of strategically important data, need not be anti-competitive."

Harvard author's website (non-HKS): Ariel Pakes