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for externalities, substitutabilities and complementarities. Firms' cost parameter is private information and is … independently distributed across firms. Externalities are type dependent. This has two consequences: first, even though the private …, which makes the use of variational methods possible. A further consequence of having type-dependent externalities, which …
Persistent link: https://www.econbiz.de/10005328894
, private information, and identity-dependent externalities. We derive the seller's optimal mechanism and characterize its main … commonly used in practice is an optimal mechanism if externalities are sufficiently large …
Persistent link: https://www.econbiz.de/10005699600
Persistent link: https://www.econbiz.de/10000344425
Persistent link: https://www.econbiz.de/10003587419
We investigate the issue of implementation via individually rational ex-post budget-balanced Bayesian mechanisms. We demonstrate that all social choice rules that generate a nonnegative ex-ante surplus, including ex-post efficient ones, can generically be implemented via such mechanisms. The...
Persistent link: https://www.econbiz.de/10005342204
Wilson (1987) criticizes the existing literature of game theory as relying too much on common-knowledge assumptions. In reaction to Wilson's critique, the recent literature of mechanism design has started to employ stronger solution concepts such as dominant strategy incentive compatibility, and...
Persistent link: https://www.econbiz.de/10005342273
In its standard “public choice” form, the mechanism-design framework abstracts from institutional and technological constraints beyond those that the modeler can represent in the definition of states, outcomes, and preferences. This abstraction can create a useful simplification. However,...
Persistent link: https://www.econbiz.de/10005063593
A crucial assumption in the optimal auction literature has been that each bidder's valuation is known to be drawn from a single unique distribution. In this paper we relax this assumption and study the optimal auction problem when there is ambiguity about the distribution from which these...
Persistent link: https://www.econbiz.de/10005063702
When a partnership comes to an end partners have to determine the terms of the dissolution. A well known way to do so is by enforcing a buy/sell option. Under its rules one partner has to offer a price for the partnership and the other agent can choose whether she wants to sell her share or buy...
Persistent link: https://www.econbiz.de/10005170270