Optimal Mechanisms for an Auction Mediator
AbstractWe consider a dynamic auction environment with a long-lived seller and short-lived buyers mediated by a third party. A mediator has incomplete information about traders' values and selects an auction mechanism to maximize her expected revenue. We characterize mediator-optimal mechanisms and show that an optimal mechanism has a simple implementation as a Vickrey auction with a reserve price where the seller pays to the mediator only a fixed percentage from the closing price.
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Date of creation: 20 Jun 2006
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Other versions of this item:
- Alexander Matros & Andriy Zapechelnyuk, 2010. "Optimal Mechanisms for an Auction Mediator," Working Papers 670, Queen Mary, University of London, School of Economics and Finance.
- Alexander Matros, 2006. "Optimal Mechanisms for an Auction Mediator," Working Papers 202, University of Pittsburgh, Department of Economics, revised Jan 2006.
- Alexander Matros & Andriy Zapechelnyuk, 2006. "Optimal Mechanisms for an Auction Mediator," Discussion Paper Series dp424, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-02 (All new papers)
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