Kyle Woodward

Job market paper

Strategic Ironing in Pay-as-Bid Auctions

I establish the existence of pure-strategy Bayesian-Nash equilibria in divisible-good pay-as-bid auctions with private information, and show that such equilibria can approximate equilibria in nearby multi-unit auctions. I show that equilibrium strategies exhibit strategic ironing, a reduction of bids below what might be expected. Strategic ironing has implications for the tractability of equilibrium strategies.