This paper introduces three methodological advances to study the optimal design of static and dynamic markets. First, we apply a mechanism design approach to characterize all incentive-compatible market equilibria. Second, we conduct a normative analysis, i.e. we evaluate alternative competition...

It has become widely accepted that information technology (IT) has had a profound influence on market transactions, with lower search costs for buyers often considered the key to lower prices and higher consumer welfare. However, sellers also use online channels to search for buyers whose...

This paper studies sequential auctions of licenses to operate in a market where those firms that obtain at least one license then engage in a symmetric market game. I employ a new refinement of Nash equilibrium, the concept of Markovian recursively undominated equilibrium. The unique solution...