Bayesian-Nash equilibria for fuzzy value auctions

Abstract

<p class="MsoNormal" style="text-align: justify;"><span style="font-size: 14pt; font-family: 'times new roman', times, serif;">This paper analyses a model of private value auctions with symmetric risk-neutral bidders, where bidders' private values of an indivisible good are fuzzy. The auction is studied as a game with incomplete information. Fuzzy random variables, their quantile functions, and expressions for expectations through quantile functions are used. An explicit expression for the solution is found. Also, expected bidders' payments are studied.</span></p>