In this paper we characterize the optimal allocation mechanism for $N$ objects, (permits), to $I$ potential buyers, (firms). Firms' payoffs depend on their costs, the costs of competitors and on the final allocation of the permits, allowing for externalities, substitutabilities and...

This paper considers the parametric inference of a wide range of structural econometric models. The class of models considered includes those with parameter-dependent support and those derived from game-theoretic models. Inference of those models has raised some important econometric issues....

I argue in favor of a competitive screening approach for studying the question of coalition formation in exchange economies under asymmetric information. I obtain a new notion of core that refines Wilson (1978)'s coarse core. It is nonempty under the standard regularity conditions. I also...

This paper analyzes a bilateral trade problem where the seller makes hidden investment that influences the buyer's private valuation. Complete contracts can be written on observable trade decisions. It is shown that efficiency level in investment and trade is negatively related to the scope of...

This paper reports an experiment involving two mechanisms that allocate a single unit of an indivisible private good among two players, at no cost to either of them. Both mechanisms, proposed by Moore (1992) and Perry and Reny (1999), are compared in terms of their relative performance to assign...

Field and experimental research demonstrate the positive relationship between efficiency and both trust and trustworthiness. Berg, Dickhaut and McCabe (BDM), 1995, first showed the existence and strength of both trust and trustworthiness in a laboratory economic experiment. Building off BDM,...

Multiplicity of Mixed Bayesian Equilibria in Mechanisms Roberto Serrano and Rajiv Vohra The literature on implementation with incomplete information has often left out the consideration of mixed-strategy equilibria. This is particularly problematic for a research program that attempts to address...