| Abstract |
This paper proposes an efficient and incentive compatible dynamicauction for selling several complementary indivisible goods to finitelymany bidders. The seller has a reserve price for every bundle of goods anddetermines which bundles to sell based on current prices. The auctioneerannounces a current price for every bundle of goods and a supply set ofgoods, every bidder subsequently responds with a set of goods demanded atthese prices, and then the auctioneer adjusts prices. We prove thatalthough bidders are allowed to exercise their market power strategically,this dynamic auction always induces bidders to act sincerely asprice-takers, yielding an efficient allocation, a Walrasian equilibriumprice for every bundle of goods, and a generalized Vickrey-Clarke-Grovespayment for every bidder in finite time.
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