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Informational Size and Efficient Auctions Author info | Abstract | Publisher info | Download info | Related research | Statistics Richard McLean () (Department of Economics, Rutgers University)
Andrew Postlewaite () (Department of Economics, University of Pennsylvania)
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We develop an auction model for the case of interdependent values and multidimensional signals in which agents’ signals are correlated. We provide conditions under which a modification of the Vickrey auction which includes payments to the bidders will result in an ex post efficient outcome. Furthermore, we provide a definition of informational size such that the necessary payments to bidders will be arbitrarily small if agents are sufficiently informationally small.
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Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number
03-011.
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Length: 27 pages
Date of creation: 30 Jul 2002Date of revision:
13 Apr 2003Handle: RePEc:pen:papers:03-011Contact details of provider: Postal: 3718 Locust Walk, Philadelphia, PA 19104 Phone: 215-898-9992 Fax: 215-573-2378 Email: Web page: http://www.econ.upenn.edu/Centers/pier More information through EDIRC
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Keywords: Auctions Incentive Compatibility Mechanism Design Interdependent Values Other versions of this item:
Find related papers by JEL classification: C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General D44 - Microeconomics - - Market Structure and Pricing - - - Auctions D60 - Microeconomics - - Welfare Economics - - - General D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Postlewaite, Andrew & Schmeidler, David, 1986.
"Implementation in differential information economies ,"
Journal of Economic Theory ,
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[Downloadable!] (restricted)
Wolfgang Pesendorfer & Jeroen M. Swinkels, 2000.
"Efficiency and Information Aggregation in Auctions ,"
American Economic Review ,
American Economic Association, vol. 90(3), pages 499-525, June.
[Downloadable!] (restricted)
Other versions: Cremer, Jacques & McLean, Richard P, 1988.
"Full Extraction of the Surplus in Bayesian and Dominant Strategy Auctions ,"
Econometrica ,
Econometric Society, vol. 56(6), pages 1247-57, November.
[Downloadable!] (restricted)
Cremer, Jacques & McLean, Richard P, 1985.
"Optimal Selling Strategies under Uncertainty for a Discriminating Monopolist When Demands Are Interdependent ,"
Econometrica ,
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[Downloadable!] (restricted)
McAfee, R Preston & Reny, Philip J, 1992.
"Correlated Information and Mechanism Design ,"
Econometrica ,
Econometric Society, vol. 60(2), pages 395-421, March.
[Downloadable!] (restricted)
P. Dasgupta & Eric Maskin, 1998.
"Efficient Auctions ,"
Harvard Institute of Economic Research Working Papers
1857, Harvard - Institute of Economic Research.
Other versions: Richard McLean & Andrew Postlewaite, 2002.
"Informational Size and Incentive Compatibility ,"
Econometrica ,
Econometric Society, vol. 70(6), pages 2421-2453, November.
[Downloadable!] (restricted)
Other versions: Motty Perry & Philip J. Reny, 2002.
"An Efficient Auction ,"
Econometrica ,
Econometric Society, vol. 70(3), pages 1199-1212, May.
[Downloadable!] (restricted)
Richard P. McLean & Andrew Postlewaite, 2006.
"Implementation with Interdependent Valuations ,"
PIER Working Paper Archive
06-007, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
[Downloadable!]
Other versions: Milgrom, Paul R & Weber, Robert J, 1982.
"A Theory of Auctions and Competitive Bidding ,"
Econometrica ,
Econometric Society, vol. 50(5), pages 1089-1122, September.
[Downloadable!] (restricted)
Other versions:
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Richard P. McLean & Andrew Postlewaite, 2006.
"Implementation with Interdependent Valuations ,"
Levine's Bibliography
122247000000001242, UCLA Department of Economics.
[Downloadable!]
Other versions: Dino Gerardi & Richard McLean & Andrew Postlewaite, 2005.
"Aggregation of Expert Opinions ,"
PIER Working Paper Archive
05-016, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
[Downloadable!]
Other versions: Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu & William R. Zame, 2005.
"The Limits of Ex-Post Implementation ,"
UCLA Economics Working Papers
839, UCLA Department of Economics.
[Downloadable!]
Other versions: George J. Mailath & Stephen Morris, 2004.
"Coordination Failure in Repeated Games with Almost-Public Monitoring ,"
PIER Working Paper Archive
05-014, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 23 Mar 2005.
[Downloadable!]
Other versions:
Stephen Morris & George J Mailath, 2005.
"Coordination Failure in Repeated Games with Almost-Public Monitoring ,"
2005 Meeting Papers
25, Society for Economic Dynamics.
[Downloadable!] George J. Mailath & Stephen Morris, 2004.
"Coordination Failure in Repeated Games with Almost-Public Monitoring ,"
Cowles Foundation Discussion Papers
1479, Cowles Foundation, Yale University.
[Downloadable!] George J. Mailath & Stephen Morris, 2004.
"Coordination Failure in Repeated Games with Almost-Public Monitoring ,"
PIER Working Paper Archive
04-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
[Downloadable!] George J. Mailath & Stephen Morris, 2005.
"Coordination Failure in Repeated Games with Almost-Public Monitoring ,"
Levine's Bibliography
122247000000000340, UCLA Department of Economics.
[Downloadable!] George J. Mailath & Stephen Morris, 2004.
"Coordination Failure in Repeated Games with Almost-Public Monitoring ,"
Cowles Foundation Discussion Papers
1479R, Cowles Foundation, Yale University, revised Mar 2005.
[Downloadable!] George J Mailath & Stephen Morris, 2006.
"Coordination Failure in Repeated Games with Almost-Public Monitoring ,"
Levine's Bibliography
122247000000001105, UCLA Department of Economics.
[Downloadable!] Mailath, George J. & Morris, Stephen, 2006.
"Coordination failure in repeated games with almost-public monitoring ,"
Theoretical Economics ,
Society for Economic Theory, vol. 1(3), pages 311-340, September.
[Downloadable!] Colin Campbell, 2005.
"Let Them Burn Money: Making Elections More Informative ,"
Departmental Working Papers
200512, Rutgers University, Department of Economics.
[Downloadable!]
Philippe Jehiel & Benny Moldovanu, 2005.
"Allocative and Informational Externalities in Auctions and Related Mechanisms ,"
Discussion Papers
142, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
[Downloadable!]
Other versions:
Philippe Jehiel & Benny Moldovanu, 2005.
"Allocative and Informational Externalities in Auctions and Related Mechanisms ,"
Levine's Bibliography
784828000000000490, UCLA Department of Economics.
[Downloadable!] Philippe Jehiel & Benny Moldovanu, 2006.
"Allocative and Informational Externalities in Auctions and Related Mechanisms ,"
Levine's Bibliography
122247000000001129, UCLA Department of Economics.
[Downloadable!] Jehiel, Philippe & Moldovanu, Benny, 2006.
"Allocative and Informational Externalities in Auctions and Related Mechanisms ,"
CEPR Discussion Papers
5558, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Claudio Mezzetti, 2007.
"Mechanism Design with Interdependent Valuations: Surplus Extraction ,"
Economic Theory ,
Springer, vol. 31(3), pages 473-488, June.
[Downloadable!] (restricted)
Other versions: Miller, Nolan & Pratt, John H. & Zeckhauser, Richard & Johnson, Scott, 2006.
"Mechanism Design with Multidimensional, Continuous Types and Interdependent Valuations ,"
Working Paper Series
rwp06-028, Harvard University, John F. Kennedy School of Government.
[Downloadable!]
Other versions:
Miller, Nolan H. & Pratt, John W. & Zeckhauser, Richard J. & Johnson, Scott, 2007.
"Mechanism design with multidimensional, continuous types and interdependent valuations ,"
Journal of Economic Theory ,
Elsevier, vol. 136(1), pages 476-496, September.
[Downloadable!] (restricted) Roust, Kevin A. & Plott, Charles R., 2005.
"The design and testing of information aggregation mechanisms: A Two-stage parimutuel IAM ,"
Working Papers
1245, California Institute of Technology, Division of the Humanities and Social Sciences.
[Downloadable!]
Hanming Fang & Stephen Morris, 2003.
"Multidimensional Private Value Auctions ,"
Cowles Foundation Discussion Papers
1423, Cowles Foundation, Yale University.
[Downloadable!]
Other versions:
Stephen Morris & Hanming Fang, 2004.
"Multidimensional Private Value Auctions ,"
Econometric Society 2004 North American Winter Meetings
174, Econometric Society.
[Downloadable!] Hanming Fang, 2004.
"Multidimensional Private Value Auctions ,"
Theory workshop papers
121473000000000021, UCLA Department of Economics.
[Downloadable!] Stephen Morris & Hanming Fang, 2004.
"Multidimensional Private Value Auctions ,"
Yale School of Management Working Papers
ysm387, Yale School of Management.
[Downloadable!] Fang, Hanming & Morris, Stephen, 2006.
"Multidimensional private value auctions ,"
Journal of Economic Theory ,
Elsevier, vol. 126(1), pages 1-30, January.
[Downloadable!] (restricted)
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