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A Troubled Asset Reverse Auction
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2008
The US Treasury has proposed purchasing $700 billion of troubled assets to restore liquidity and solve the current … auction are to: 1) provide a quick and effective means to purchase troubled assets and increase liquidity; 2) protect the … by yielding a competitive price for each security and allow bidders to manage liquidity constraints and portfolio risk …
Persistent link: https://www.econbiz.de/10004997794
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Auctions for Injecting Bank Capital
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2009
injection of government money into banks in return for ownership stakes. The purpose of this short note, an addendum to “A … Troubled Asset Reverse Auction,” is to describe an auction mechanism suitable for injections of capital into banks. The …
Persistent link: https://www.econbiz.de/10004997797
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Common-Value Auctions with Liquidity Needs: An Experimental Test of a Troubled Assets Reverse Auction
Cramton, Peter; Ausubel, Lawrence M.; Filiz-Ozbay, Emel; … - University of Maryland, Department of Economics - Peter … - 2009
higher bank payoffs, since the dynamic auction enabled the banks to better manage their liquidity needs. The clock auctions …We experimentally test alternative auction designs suitable for pricing and removing troubled assets from banks … purchased as pools of related securities. Each bank has private information about its liquidity need and the true common value …
Persistent link: https://www.econbiz.de/10004997800
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No Substitute for the 'P'-Word in Financial Rescue
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2009
irrational fear among policymakers: the fear of trying to put a price on banks’ troubled assets. So profound is this fear that … the Bush Treasury opted instead for the “suitcase approach,” where large sums of cash were delivered to banks (solvent and …
Persistent link: https://www.econbiz.de/10004997801
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A Two-Sided Auction for Legacy Loans
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2009
unanswered. We flesh out the auction design for legacy loans. A two-sided auction is required. Both banks and private investors …
Persistent link: https://www.econbiz.de/10004997814
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Auction Design Critical for Rescue Plan
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2008
The Treasury proposes to invest $700 billion in mortgage-related securities to resolve the financial crisis, using market mechanisms such as reverse auctions to determine prices. A well-designed auction process can indeed be an effective tool for acquiring distressed assets at minimum cost to...
Persistent link: https://www.econbiz.de/10004997815
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Making Sense of the Aggregator Bank
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2009
On Tuesday, 10 February 2009, Treasury Secretary Geithner proposed the aggregator bank (“public-private investment fund”) as a key instrument to resolve the financial crisis (www.financialstability.gov). The Treasury description leaves many issues unanswered. Here we explain how an...
Persistent link: https://www.econbiz.de/10004997823
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Virtual Power Plant Auctions
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2009
Since their advent in 2001, virtual power plant (VPP) auctions have been implemented widely. In this paper, we describe the simultaneous ascending-clock auction format that has been used for virtually all VPP auctions to date, elaborating on other design choices that most VPP auctions have had...
Persistent link: https://www.econbiz.de/10008620573
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Auction Design for Wind Rights
Cramton, Peter; Ausubel, Lawrence M. - University of Maryland, Department of Economics - Peter … - 2012
The best sites for offshore wind farms on the US Outer Continental Shelf are scarce. To make the best use of this scarce resource, it is necessary to implement a fair and efficient mechanism to assign wind rights to companies that are most likely to develop off-shore wind energy projects....
Persistent link: https://www.econbiz.de/10010575700
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System and Method for a Hybrid Clock and Proxy Auction
Cramton, Peter; Ausubel, Lawrence M.; Milgrom, Paul - University of Maryland, Department of Economics - Peter … - 2012
The present invention primarily concerns hybrid auctions that may, for example, combine a clock auction with a proxy auction. Hybrid auctions include multi-item auctions that comprise at least two phases of package auctions: an earlier phase in which bidders participate in a clock auction (or...
Persistent link: https://www.econbiz.de/10010575701