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Auction Design without Commitment

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Author Info
Hannu Vartiainen (Department of Economics, Turku School of Economics)

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Abstract

We study auction design when parties cannot commit to the mechanism. The seller may change the rules of the game any number of times and the buyers may choose their outside option at any stage of the game. A dynamic consistency condition and an optimality condition property are defined to characterize the seller's mechanism selection behavior. The unique stationary mechanism selection rule that meets the conditions is the English auction.

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Publisher Info
Paper provided by Aboa Centre for Economics in its series Discussion Papers with number 44.

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Length: 29
Date of creation: Mar 2009
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Handle: RePEc:tkk:dpaper:dp44

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Related research
Keywords: auctions; commitment; consistency; one-deviation property; stationarity;

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation

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Full 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.)

  1. Leonardo Rezende, 2009. "Biased procurement auctions," Economic Theory, Springer, vol. 38(1), pages 169-185, January. [Downloadable!] (restricted)
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