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Partnerships and Double Auctions with Interdependent Valuations

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  • Kittsteiner, Thomas

    (Sonderforschungsbereich 504)

Abstract

In a symmetric independent private values setting a sealed-bid double auction dissolves a partnership efficiently. This well known result remains valid in a model with interdependent valuations. However, if common values components are large agents might prefer not to participate in a double auction. Therefore a simple extention of the rules of double-auctions is suggested that ensures participation. Even though these modified double auctions are not incentive efficient, they still realize gains from trade and can be implemented without knowledge about the specifications of the model.

Suggested Citation

  • Kittsteiner, Thomas, 2000. "Partnerships and Double Auctions with Interdependent Valuations," Sonderforschungsbereich 504 Publications 01-15, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  • Handle: RePEc:xrs:sfbmaa:01-15
    Note: Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.
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    References listed on IDEAS

    as
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