Please use this identifier to cite or link to this item:
|Title:||Optimal auctions with asymmetric financial externalities||Authors:||Lu, J.||Keywords:||Auction design
|Issue Date:||Mar-2012||Citation:||Lu, J. (2012-03). Optimal auctions with asymmetric financial externalities. Games and Economic Behavior 74 (2) : 561-575. ScholarBank@NUS Repository. https://doi.org/10.1016/j.geb.2011.08.013||Abstract:||This paper studies optimal auction design with asymmetric linear financial externalities among bidders. When the matrix γ that relates bidders' payoffs to their payments is nonsingular, the payment-related component in the design objective must equal a unique linear combination of its counterparts in bidder's payoffs. If all multipliers of the linear combination are nonnegative, a modified Myerson procedure is discovered for deriving the optimal design. If any multiplier is negative, an arbitrarily high value can be achieved for design objective by setting proper fixed transfers to bidders. When the matrix γ is singular, the unbounded optimum result typically prevails. We applied our method to auctions with cross shareholdings and charity auctions for revenue-maximizing and efficient designs. © 2011 Elsevier Inc.||Source Title:||Games and Economic Behavior||URI:||http://scholarbank.nus.edu.sg/handle/10635/52121||ISSN:||08998256||DOI:||10.1016/j.geb.2011.08.013|
|Appears in Collections:||Staff Publications|
Show full item record
Files in This Item:
There are no files associated with this item.
checked on Dec 11, 2019
WEB OF SCIENCETM
checked on Dec 4, 2019
checked on Dec 2, 2019
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.