A Characterization of the Conditions for Optimal Auction with Resale

Tymofiy Mylovanov () and Thomas Tröger
Authors registered in the RePEc Author Service: Thomas Troeger

Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems from Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich

Abstract: Zheng has proposed a seller-optimal auction for (asymmetric) independent-privatevalue environments where inter-bidder resale is possible. Zheng’s construction requires novel conditions — Resale Monotonicity, Transitivity, and Invariance — on the bidders’ value distribution profile. The only known examples of distribution profiles satisfying these conditions in environments with three or more bidders are uniform distributions. Our characterization result shows that Zheng’s conditions, while being strong, are satisfied by many non-uniform distribution profiles. A crucial step in our analysis is to show that Invariance implies Resale Monotonicity and Transitivity.

Keywords: independent private values; optimal auction; resale; inverse virtual valuation function (search for similar items in EconPapers)
Date: 2006-05
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Citations: View citations in EconPapers (3)

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