Single-object auction analysis: theory and strategic bidding

Abstract

[en] The main goal of this work is to discuss the most relevant aspects regarding single-object auction theory. In particular, principal types of single-object auctions, equilibrium strategies for each type, and variations on the proposed model are disclosed. In order to accomplish these aims, a brief summary of basic terms on game theory is provided in first place so as to set the foundations of auction theory. This preliminary summary includes a series of key results on game theory, allowing to use them as a tool to apply into auction theory and thus understand the second part of the document. Finally, a real example of an auction type is provided: the U.S Treasury Bill auction. Definitions, mechanisms and bidding behaviour are provided, along with a brief introduction to multi-object auctions.