Optimal Multiunit Exchange Design with Single-Dimensionality

Hitoshi Matsushima

No CARF-F-292, CARF F-Series from Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo

Abstract: We investigate allocation problems that generalize auction and bargaining, namely multiunit exchanges, where both a central planner and participants bring homogeneous commodities to sell altogether, and there exist restrictions on feasible allocations. We characterize the optimal mechanism in terms of revenue-maximization under dominant strategy incentive compatibility and ex-post individual rationality. We introduce modified virtual valuation, and show that, irrespective of the restrictions, the optimization can be replaced with the maximization of the sum of modified virtual valuations. We apply this result to an important class of allocation problems for heterogeneous items with single-item demands based on Mussa and Rosen (1978).

Pages: 25 pages
Date: 2012-05, Revised 2012-09
New Economics Papers: this item is included in nep-cta
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.carf.e.u-tokyo.ac.jp/old/pdf/workingpaper/fseries/304.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cfi:fseres:cf292

Access Statistics for this paper

More papers in CARF F-Series from Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo Contact information at EDIRC.
Bibliographic data for series maintained by ().