On a Fundamental Property of Talman-Yang's Auction under Price Control
Recently Talman and Yang (2008) examined an assignment market under price control. In the market a number of heterogeneous items are to be sold to several bidders. Each bidder has a valuation on each item. The seller has a reservation price for every item. Meanwhile every item has a ceiling price imposed by a central planner. Due to price controls, there usually do not exist market-clearing prices. To deal with this allocation problem, Talman and Yang proposed a dynamic auction with rationing that always yields a constrained equilibrium. In this paper we establish that this dynamic auction can actually ï¬ nd a core allocation infinite steps, resulting in a Pareto efficient outcome. A core allocation consists of an assignment of items and a supporting price vector for the assignment.
|Date of creation:||Feb 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom|
Phone: (0)1904 323776
Web page: http://www.york.ac.uk/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kurz, Mordecai, 1982. "Unemployment equilibrium in an economy with linked prices," Journal of Economic Theory, Elsevier, vol. 26(1), pages 100-123, February.
- Herings P. Jean-Jacques & Konovalov Alexander, 2002.
"Constrained Suboptimality when Prices Are Non-competitive,"
012, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Herings, P. Jean-Jacques & Konovalov, Alexander, 2009. "Constrained suboptimality when prices are non-competitive," Journal of Mathematical Economics, Elsevier, vol. 45(1-2), pages 43-58, January.
- Herings P. Jean-Jacques & Konovalov Alexander, 2000. "Constrained Suboptimality when Prices Are Non-competitive," Research Memorandum 012, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Herings, P.J.J. & Konovalov, A., 2000. "Constrained Suboptimality When Prices are Non-Competitive," Discussion Paper 2000-114, Tilburg University, Center for Economic Research.
- Richard Arnott, 1995. "Time for Revisionism on Rent Control?," Journal of Economic Perspectives, American Economic Association, vol. 9(1), pages 99-120, Winter.
- Dehez, Pierre & Dreze, Jacques H., 1984.
"On supply-constrained equilibria,"
Journal of Economic Theory,
Elsevier, vol. 33(1), pages 172-182, June.
- Demange, Gabrielle & Gale, David & Sotomayor, Marilda, 1986.
Journal of Political Economy,
University of Chicago Press, vol. 94(4), pages 863-72, August.
- Herings, P.J.J. & Talman, A.J.J. & Zang, Z., 1994.
"The computation of a continuum of constrained equilibria,"
1994-38, Tilburg University, Center for Economic Research.
- Herings, P.J.J. & Talman, A.J.J. & Yang, Z.F., 1996. "The computation of a continuum of constrained equilibria," Other publications TiSEM ba4c6d83-befb-4a25-8477-c, Tilburg University, School of Economics and Management.
- Tommy Andersson & Lars‐Gunnar Svensson, 2014.
"Non‐Manipulable House Allocation With Rent Control,"
Econometric Society, vol. 82(2), pages 507-539, 03.
- Andersson, Tommy & Svensson, Lars-Gunnar, 2012. "Non-Manipulable House Allocation with Rent Control," Working Papers 2012:18, Lund University, Department of Economics, revised 10 Jun 2013.
- Cox, Charles C, 1980. "The Enforcement of Public Price Controls," Journal of Political Economy, University of Chicago Press, vol. 88(5), pages 887-916, October.
- Weddepohl, Claus, 1987. "Supply-constrained equilibria in economies with indexed prices," Journal of Economic Theory, Elsevier, vol. 43(2), pages 203-222, December.
When requesting a correction, please mention this item's handle: RePEc:yor:yorken:13/06. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Hodgson)
If references are entirely missing, you can add them using this form.