Optimal Mechanisms for an Auction Mediator
AbstractWe consider a multi-period auction with a seller who has a single object for sale, a large population of potential buyers, and a mediator of the trade. The seller and every buyer have independent private values of the object. The mediator designs an auction mechanism which maximizes her revenue subject to certain constraints for the traders. In each period the seller auctions the object to a set of buyers drawn at random from the population. The seller can re-auction the object (infinitely many times) if it is not sold in previous interactions. We characterize the class of mediator-optimal auction mechanisms. One of such mechanisms is a Vickrey auction with a reserve price where the seller pays to the mediator a fixed percentage from the closing price.
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Bibliographic InfoPaper provided by The Center for the Study of Rationality, Hebrew University, Jerusalem in its series Discussion Paper Series with number dp424.
Length: 27 pages
Date of creation: Jun 2006
Date of revision:
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 & Andriy Zapechelnyuk, 2006. "Optimal Mechanisms for an Auction Mediator," Levine's Bibliography 321307000000000113, UCLA Department of Economics.
- Alexander Matros, 2006. "Optimal Mechanisms for an Auction Mediator," Working Papers 202, University of Pittsburgh, Department of Economics, revised Jan 2006.
- 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
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