GAME THEORY AND MATHEMATICAL ECONOMICS RESEARCH SEMINAR

 Abstract: We derive the symmetric, revenue maximizing allocation of m units among n symmetric agents who have unit demand, and who take costly actions that influence their values before participating in the mechanism. The auction with costly actions can be represented by a reduced form model where agents have convex, non-expected utility preferences over the interim probability of receiving an object. Both the uniform m + 1 price auction and the discriminatory pay-your-bid auction with reserve prices constitute symmetric revenue maximizing mechanisms.

Pages

Subscribe to The Hebrew University of Jerusalem - Center for the Study of Rationality RSS