Discussion paper

DP4331 Asymptotic Analysis of Large Auctions

We study private-value auctions with a large number of bidders. We calculate approximations of the equilibrium bids and the seller's revenue in first-price auctions regardless of whether the bidders are symmetric or asymmetric, or risk-neutral or risk-averse. Furthermore, we show that first-price auctions with asymmetric bidders, or risk-averse bidders, are asymptotically revenue equivalent to wide classes of standard auctions.


Sela, A, A Gavious and G Fibich (2004), ‘DP4331 Asymptotic Analysis of Large Auctions‘, CEPR Discussion Paper No. 4331. CEPR Press, Paris & London. https://cepr.org/publications/dp4331