Mares, Vlad; Swinkels, Jeroen M. - In: Games and Economic Behavior 72 (2011) 1, pp. 218-241
Consider a setting with n sellers having i.i.d. costs with log-concave density f from cumulative F, and a buyer who puts a premium [Delta]i on procuring from seller i. We show how for any given [Delta]1,...,[Delta]n, a simple second price bonus auction can be chosen which comes surprisingly...