Menezes and Monteiro, Math. Soc. Sci. (1995), show that a multi-unit211u001ediscriminatory price auction does not have a pure strategy equilibrium unless one 211u001eimposes some rather special conditions on the demand functions. This non-211u001eexistence result might indicate a problem either with the underlying auction 211u001eprocedure (as Menezes and Monteiro suggest) or with the modeling approach (as we 211u001esuggest). We observe that the non-existence problem disappears if bids must come 211u001ein multiples of smallest units--a realistic feature. Moreover, we show that most 211u001eof the analysis can be recast in a discrete action model.
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