An Efficient Multi-Item Dynamic Auction with Budget Constrained Bidders
AbstractAn auctioneer wishes to sell several heterogeneous indivisible items to a group of potential bidders. Each bidder has valuations over the items but might face a budget constraint and may therefore not be able to pay up to his values. In such markets, a competitive equilibrium typically fails to exist. We develop a novel dynamic auction and prove that the auction always ï¬nds a core allocation. The core allocation consists of an assignment of the items and its associated supporting price vector and is Pareto efficient.
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Bibliographic InfoPaper provided by Department of Economics, University of York in its series Discussion Papers with number 13/31.
Date of creation: Nov 2013
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Dynamic auction; multi-item auction; budget constraint; core; efficiency;
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- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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