Second best efficiency and the English auction

Angel Hernando-Veciana () and Fabio Michelucci

Games and Economic Behavior, 2011, vol. 73, issue 2, 496-506

Abstract: We study the second best in a single unit sale to two bidders. This is the allocation that maximizes the expected social surplus subject to the biddersʼ incentive compatible constraints when the first best is not implementable. We prove that Maskinʼs (1992) result that any first best allocation that is deterministic and monotone can be implemented with the English auction carries over to the second best.

Keywords: Efficiency; Auctions; Mechanism design (search for similar items in EconPapers)
JEL-codes: D44 D82 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:73:y:2011:i:2:p:496-506

DOI: 10.1016/j.geb.2011.04.003

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