When bidders exhibit multi-unit demands, standard auction methods generally yield
inefficient outcomes. This article proposes a new ascending-bid auction for homogeneous
goods, such as Treasury bills or telecommunications spectrum. The auctioneer announces
a price and bidders respond with quantities. Items are awarded at the current price
whenever they are "clinched," and the price is incremented until the market clears.
With private values, this (dynamic) auction yields the same outcome as the (sealed-bid)
Vickrey auction, but has advantages of simplicity and privacy preservation. With
interdependent values, this auction may retain efficiency, whereas the Vickrey auction
suffers from a generalized Winner's Curse.