Optimal Multiunit Exchange Design
We investigate multiunit exchange where a central planner and participants both bring commodities to sell and the central planner plays the role of platform provider. The central planner has restrictions on allocations. We characterize the optimal mechanism concerning his (her) revenue under incentive compatibility and individual rationality in the ex-post term. We introduce modified virtual valuation and show that the optimization problem can be replaced with the maximization of modified virtual valuations. We apply our results to important problems of single-unit demands and position exchanges. We demonstrate a clock auction design that implements the optimal position allocation through dominant strategies.
|Date of creation:||May 2012|
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- Susan Athey & Glenn Ellison, 2011.
"Position Auctions with Consumer Search,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(3), pages 1213-1270.
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NBER Working Papers
11765, National Bureau of Economic Research, Inc.
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- Armstrong, Mark, 2000. "Optimal Multi-object Auctions," Review of Economic Studies, Wiley Blackwell, vol. 67(3), pages 455-81, July.
- Fernando Branco, 1996. "Multiple unit auctions of an indivisible good," Economic Theory, Springer, vol. 8(1), pages 77-101.
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