We study the implementation of constrained-efficient allocations in labour markets where a basic coordination problem leads to an equilibrium matching function. We argue that these allocations can be achieved in equilibrium if wages are determined by ex post bidding. This holds true even in...

This is a commentary on Vernon Smith's contributions to experimental economics

This paper studies an auction model in which one of the bidders, the insider, has better information about a common component of the value of the good for sale, than the other bidders, the outsiders. Our main result shows that the insider may have incentives to disclose her private information...

This paper considers a situation of two sellers of perfectly substitutable items competing in publicly announced reserve prices to induce potential bidders participation at their auction. After learning their own valuations and upon observing the reserve prices, potential bidders make a...