EconPapers    
Economics at your fingertips  
 

Market Design with Correlated Valuations

Yongmin Chen () and Ruqu Wang ()

Economica, 2006, vol. 73, issue 292, 659-672

Abstract: The effects of information on market design are explored in a simple setting where firms have private information about their correlated fixed costs and the government aims to maximize its expected revenue conditional on achieving efficient allocations. Government revenues are higher when the costs are less correlated (or are more of a private value). The reduced correlation increases the firms' information rents, but a change in the information structure also changes the expected market structures with positive effects on government revenues. If the government faces the no‐deficit constraint, there are situations where efficient allocations are achieved under asymmetric information but not under symmetric information.

Date: 2006
References: View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/j.1468-0335.2006.00531.x

Related works:
Working Paper: Market Design With Correlated Valuations (2005) Downloads
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:bla:econom:v:73:y:2006:i:292:p:659-672

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0427

Access Statistics for this article

Economica is currently edited by Frank Cowell, Tore Ellingsen and Alan Manning

More articles in Economica from London School of Economics and Political Science Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-05-20
Handle: RePEc:bla:econom:v:73:y:2006:i:292:p:659-672