Auctioning public goods to groups of aghents

Dirk Alboth (), Anat Lerner () and Jonathan Shalev ()
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Dirk Alboth: Mathematik, University Paderbon, D-33095 Padernborn, Germany

No 1997077, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: A profit-maximizing auctioneer can provide a public good to at most one of a number of groups of agents. The groups may have non-empty intersections. 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 with the highest sum of the agents’ bids, only if this sum exceeds a minimum price declared previously by the auctioneer. For the one-group two-bidder case with private values drawn from a uniform distribution we characterize the continuously differentiable symmetric equilibrium bidding functions for the agents, and find the optimal minimum 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

Keywords: public goods; auctions; externalities (search for similar items in EconPapers)
JEL-codes: C00 C72 D44 D82 H41 (search for similar items in EconPapers)
Date: 1997-10-01
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1997077

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