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Contingent Auctions with Allocative Externalities : Vickrey Versus the Ausubel-Milgrom Proxy Auction

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  • Laurent Lamy

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Abstract

We introduce contingent auction mechanisms, which is a supersetof combinatorial auctions, and where bidders submit bids on packagesthat are contingent on the whole final assignment. Without externalities,the Vickrey and the Ausubel-Milgrom Proxy Auction areboth robust if items are perceived as substitutes. Such an equivalencebetween those formats may not hold with externalities and theanalog of the substitute condition is a complex unexplored issue. We analyse those issues in the Negative Group-Dependent Externalities framework, a general structure with allocative externalities betweenjoint-purchasers.

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  • Laurent Lamy, 2007. "Contingent Auctions with Allocative Externalities : Vickrey Versus the Ausubel-Milgrom Proxy Auction," Working Papers 2007-26, Center for Research in Economics and Statistics.
    • Handle: RePEc:crs:wpaper:2007-26
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