Template-type: ReDIF-Paper 1.0
Author-Name: Francisco Álvarez
Author-Email: fralvare@ccee.ucm.es
Author-Homepage: https://www.ucm.es/fundamentos-analisis-economico2/alvarez-gonzalez,-francisco
Author-Person: pal54 
Author-Workplace-Name: Departamento de Economía Cuantitativa, Universidad Complutense de Madrid
Author-Workplace-Homepage: https://www.ucm.es/fundamentos-analisis-economico2
Author-Name: Cristina Mazón
Author-Email: cmazon@ccee.ucm.es
Author-Homepage: https://www.ucm.es/fundamentos-analisis-economico2/mazon-calpena,-cristina
Author-Workplace-Name: Departamento de Economía Cuantitativa,Universidad Complutense de Madrid
Author-Workplace-Homepage: https://www.ucm.es/fundamentos-analisis-economico2
Title: Treasury actions: The Spanish format
Abstract: The Spanish Treasury is the only Treasury in the world that uses a hybrid system 
	of discriminatory and uniform price auctions to sell government debt: winning bidders pay their bid 
	price for each unit if this is lower than the weighted average price of winning bids, and pay the 
	weighted average price of winning bids otherwise. Following Gordy (1996), we model the Spanish auction as a 
	common value auction of multiple units with private information, allowing for multiple bids. Simulations 
	show that bidders use bid spread to hedge against both uncertainty and the winner's curse, and that the 
	expected seller's revenue is higher in the Spanish than in the discriminatory auction in a number of cases.
Classification-JEL: D44
Keywords: Subastas, Subastas del Tesoro, Subasta española, Subastas de múltiples unidades, Auctions, 
	Treasury auctions, Spanish auction, Multi-unit auctions.
Length: pages 20
Creation-Date:2002 
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae0228.txt
File-URL: https://eprints.ucm.es/id/eprint/25587/1/0228.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:0228