Definition Bid-Profile Supports
definition formalized

Bid-Profile Supports

The basic auction layer supplies a small family of support predicates on bid profiles — predicates that constrain the admissible bid space without modifying the underlying auction format itself. These are useful when analysing auctions with bounded bid domains, sign restrictions, or strategy-set constraints.

Predicates

For a fixed bidder set I and an ordered scalar bid type V (typically ):

  • Auction.BidProfile.Nonnegative b — every bid is nonnegative, $\forall i.\; b_i \ge 0$. Captures the standard convention in private- value auctions that bids represent willingness-to-pay.
  • Auction.BidProfile.InSet b S — for a per-bidder admissible set $S_i \subseteq V$, the profile satisfies $\forall i.\; b_i \in S_i$. Captures heterogeneous strategy spaces.
  • Auction.BidProfile.InBox b ℓ u — for per-bidder lower/upper bounds $\ell_i, u_i$, the profile lies in the rectangular box $\forall i.\; \ell_i \le b_i \le u_i$.
  • Auction.BidProfile.StrategyMapsBoxToBox σ ℓ u ℓ' u' — a strategy $\sigma : V \to V$ maps the input bid box $[\ell, u]$ into the output bid box $[\ell', u']$. Captures Lipschitz/contraction conditions for best-response dynamics in bounded auctions.

Identification with closed intervals

Auction.BidProfile.inBox_iff_inSet_Icc certifies that the "rectangular box" predicate InBox b ℓ u coincides pointwise with InSet b (fun i => Set.Icc ℓ_i u_i). This makes box-constrained bid spaces interoperable with the Mathlib Set.Icc API (continuity, compactness, integration).

Usage

The support predicates are not part of any concrete auction's definition; they are side conditions attached to theorems about bounded or sign-restricted auctions. Typical use cases:

  • Existence of equilibria in compact bid spaces (closed boxes).
  • Single-crossing arguments in Bayesian first-price auctions, where bids are restricted to a bounded interval $[0, \omega]$ matching the type support.
  • Best-response correspondences for fixed-point arguments.

References

  • [Krishna, Chapters 2-3] Vijay Krishna, Auction Theory, 2nd ed.. Bid and valuation domains for standard sealed-bid auction models with bounded support.
  • [AGT, Chapter 9, Sections 9.3-9.5] Nisan, Roughgarden, Tardos, and Vazirani, Algorithmic Game Theory. Reports, strategy spaces, and payment mechanisms in direct mechanisms.

Provenance

  • Migrated from EconCSLib pull request 27, old blueprint label def:auction_basic_bid_support in blueprint/src/content.tex.

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