EconPapers    
Economics at your fingertips  
 

Profit Maximizing in Auctions of Public Goods

Dirk Alboth, Anat Lerner () and Jonathan Shalev ()

Journal of Public Economic Theory, 2001, vol. 3, issue 4, 501-25

Abstract: A profit-maximizing auctioneer can provide a public good to a group of agents. Each group member has a private value for the good being provided to the group. We investigate an auction mechanism where the auctioneer provides the good to the group only if the sum of their bids exceeds a reserve price declared previously by the auctioneer. For the two-bidder case with private values drawn from a uniform distribution we characterize the continuously differentiable symmetric equilibrium bidding functions for the agents, and we find the optimal reserve price for the auctioneer when such functions are used by the bidders. We also examine another interesting family of equilibrium bidding functions for this case, with a discrete number of possible bids, and show the relation (in the limit) to the differentiable bidding functions. Copyright 2001 by Blackwell Publishing Inc.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2001&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Profit maximizing in auctions of public goods (2001) Downloads
Working Paper: Profit maximizing in auctions of public goods (1998) Downloads
Working Paper: Profit Maximizing in Auctions of Public Goods (1998) 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:jpbect:v:3:y:2001:i:4:p:501-25

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-06-27
Handle: RePEc:bla:jpbect:v:3:y:2001:i:4:p:501-25