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Contingent Auctions with Allocative Externalities: Vickrey vs. the Ausubel-Milgrom Proxy Auction

Listed author(s):
  • Laurent Lamy

    (CREST-INSEE)

Registered author(s):

    We introduce contingent auction mechanisms, which is a superset of combinatorial auctions, and where bidders submit bids on packages that are contingent on the whole final assignment. Without externalities, the Vickrey and the Ausubel-Milgrom Proxy Auction are both robust if items are perceived as substitutes. Such an equivalence between those formats may not hold with externalities and the analog of the substitute condition is a complex unexplored issue. We analyse those issues in the Negative Group-Dependent Externalities framework, a general structure with allocative externalities between joint-purchasers.

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    File URL: https://economicdynamics.org/meetpapers/2007/paper_427.pdf
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    Paper provided by Society for Economic Dynamics in its series 2007 Meeting Papers with number 427.

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    Date of creation: 2007
    Handle: RePEc:red:sed007:427
    Contact details of provider: Postal:
    Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA

    Web page: http://www.EconomicDynamics.org/
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