Smooth multibidding mechanisms
David Perez-Castrillo () and
Games and Economic Behavior, 2012, vol. 76, issue 2, 420-438
We propose a smooth multibidding mechanism for environments where a group of agents have to choose one out of several projects. Our proposal is related to the multibidding mechanism (Pérez-Castrillo and Wettstein, 2002) but it is “smoother” in the sense that small variations in an agentʼs bids do not lead to dramatic changes in the probability of selecting a project. This mechanism is shown to possess several interesting properties. First, the equilibrium outcome is unique. Second, it ensures an equal sharing of the surplus that it induces. Finally, it enables reaching an outcome as close to efficiency as is desired.
Keywords: Mechanism design; NIMBY (search for similar items in EconPapers)
JEL-codes: D78 D72 (search for similar items in EconPapers)
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Working Paper: Smooth Multibidding Mechanisms (2011)
Working Paper: Smooth multibidding mechanisms (2010)
Working Paper: Smooth Multibidding Mechanisms (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:76:y:2012:i:2:p:420-438
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