Optimal Design for an Informed Auctioneer

Seung Han Yoo

No 1702, Discussion Paper Series from Institute of Economic Research, Korea University

Abstract: Each seller's quality, not associated with a contractible action, making a contract incomplete, a principal seeks a better-informed auctioneer to tackle the problem. To induce the auctioneer's truthful quality reports for multiple sellers, the principal constructs the first-order absolute alignment that is aligned with a benchmark's absolute criterion. The optimal compensation for the auctioneer highlights a new role for reserve prices as a revelation device. In addition, we design a practical auction format to implement the optimal mechanism. Finally, this mechanism is applied to asymmetric seller auctions to relax the long-lasting assumption: common knowledge of asymmetric distributions.

Keywords: First-order absolute alignment; Auction; Revelation device (search for similar items in EconPapers)
JEL-codes: D44 D82 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cta
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://econ.korea.ac.kr/~ri/WorkingPapers/w1702.pdf (application/pdf)

Related works:
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:iek:wpaper:1702

Access Statistics for this paper

More papers in Discussion Paper Series from Institute of Economic Research, Korea University Contact information at EDIRC.
Bibliographic data for series maintained by Kim, Jisoo ().