An auctioneer has k identical goods to sell. The seller has zero value for each good....
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An auctioneer has k identical goods to sell. The seller has zero value for each good. There are n potential buyers, each with single-unit demand and IID private value ~ F[0,0]. Assume the marginal revenue function 1 - F(0) MR(0) = 0 f(0) is increasing in 0. (a) Describe the direct revelation mechanism (pi, ti) in this setting. What are the constraints on these functions? (b) Derive the seller's revenue from any IC/IR mechanism. What mechanism maximizes the seller's revenue? (c) How can we implement the optimal mechanism using a sealed pay-your-bid auction? Derive agents' bidding function in such an auction.¹ (d) How can we implement the optimal mechanism in dominant strategies? An auctioneer has k identical goods to sell. The seller has zero value for each good. There are n potential buyers, each with single-unit demand and IID private value ~ F[0,0]. Assume the marginal revenue function 1 - F(0) MR(0) = 0 f(0) is increasing in 0. (a) Describe the direct revelation mechanism (pi, ti) in this setting. What are the constraints on these functions? (b) Derive the seller's revenue from any IC/IR mechanism. What mechanism maximizes the seller's revenue? (c) How can we implement the optimal mechanism using a sealed pay-your-bid auction? Derive agents' bidding function in such an auction.¹ (d) How can we implement the optimal mechanism in dominant strategies?
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Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
Posted Date:
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