Multi-unit auctions reveal surprising bidder strategies, impacting market dynamics.
The article explores how bidders behave in auctions where multiple identical items are sold at the same price. Bidders tend to use increasing strategies in these auctions, especially when there are limits on the number of bids they can make. The minimum price set by the seller can also affect how bidders bid, similar to single-item auctions. In some cases, these auction rules lead to a unique bidding strategy. Overall, the study shows that certain restrictions in multi-item auctions can make bidders act similarly to single-item auctions.