AbstractPractical or legal constraints often restrict auctions to being symmetric (anonymous and nondiscriminatory). We examine when this restriction prevents a seller from achieving his objectives. In an independent private value setting with heterogenous buyers, we characterize the set of incentive compatible and individually rational outcomes that can be implemented via a symmetric auction. We show that symmetric auctions can yield many discriminatory outcomes such as revenue maximization and affirmative action. We also characterize the set of implementable outcomes when individual rationality holds ex-post rather than in expectation. This additional requirement may prevent the seller from maximizing revenue.
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Bibliographic InfoPaper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-486.
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Date of creation: 13 May 2013
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symmetric auctions; implementation; indirect mechanisms; optimal auctions;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-22 (All new papers)
- NEP-CTA-2013-05-22 (Contract Theory & Applications)
- NEP-MIC-2013-05-22 (Microeconomics)
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