Informational Size and Efficient Auctions
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.
|Date of creation:||30 Jul 2002|
|Date of revision:||13 Apr 2003|
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Web page: http://economics.sas.upenn.edu/pier
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