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Efficient Auctions and Interdependent Types

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Listed:
  • Dirk Bergemann
  • Stephen Morris
  • Satoru Takahashi

Abstract

We consider the efficient allocation of a single good with interdependent values in a quasi-linear environment. We present an approach to modeling 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.

Suggested Citation

  • Dirk Bergemann & Stephen Morris & Satoru Takahashi, 2012. "Efficient Auctions and Interdependent Types," American Economic Review, American Economic Association, vol. 102(3), pages 319-324, May.
  • Handle: RePEc:aea:aecrev:v:102:y:2012:i:3:p:319-24
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    References listed on IDEAS

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    1. Neeman, Zvika, 2004. "The relevance of private information in mechanism design," Journal of Economic Theory, Elsevier, vol. 117(1), pages 55-77, July.
    2. Bergemann, Dirk & Morris, Stephen & Takahashi, Satoru, 2017. "Interdependent preferences and strategic distinguishability," Journal of Economic Theory, Elsevier, vol. 168(C), pages 329-371.
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    6. Dirk Bergemann & Stephen Morris, 2012. "Robust Mechanism Design," World Scientific Book Chapters, in: Robust Mechanism Design The Role of Private Information and Higher Order Beliefs, chapter 2, pages 49-96, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

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    3. Farinha Luz, Vitor, 2013. "Surplus extraction with rich type spaces," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2749-2762.

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    More about this item

    JEL classification:

    • C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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