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Cost of efficiency in trading perfect complements

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  • Chaturvedi, Rakesh

Abstract

For trade involving perfect complements and fragmented ownership, lower bounds on the deficit cost of supporting efficiency is provided by first providing informative estimates for the generalized VCG mechanism, then doing so for all incentive-feasible direct mechanisms, and finally for all voluntary trading mechanisms.

Suggested Citation

  • Chaturvedi, Rakesh, 2023. "Cost of efficiency in trading perfect complements," Economics Letters, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:ecolet:v:230:y:2023:i:c:s0165176523002616
    DOI: 10.1016/j.econlet.2023.111236
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    References listed on IDEAS

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    More about this item

    Keywords

    Holdout problem; Mechanism design; Trading complements;
    All these keywords.

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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