Efficient Auctions and Interdependent Types
Yale University - Cowles Foundation - Department of Economics
Princeton University - Department of Economics
National University of Singapore (NUS) - Department of Economics
January 18, 2012
Cowles Foundation Discussion Paper No. 1846
Economic Theory Center Working Paper No. 30-2012
We consider the efficient allocation of a single good with interdependent values in a quasi-linear environment. We present an approach to modelling interdependent preferences distinguishing between "payoff types" and "belief types" and report a characterization of when the efficient allocation can be partially Bayesian implemented on a finite type space. The characterization can be used to unify a number of sufficient conditions for efficient partial implementation in this classical auction setting.
We report how a canonical language for discussing interdependent types -- developed in a more general setting by Bergemann, Morris and Takahashi (2011) -- applies in this setting and note by example that this canonical language will not allow us to distinguish some types in the payoff type -- belief type language.
Number of Pages in PDF File: 16
Keywords: Mechanism Design, Robust mechanism design, Efficient auctions, Interdepedent types, Partial implementation, Full implementation
JEL Classification: C79, D82working papers series
Date posted: January 18, 2012
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