Abstract
We study optimal auctions when contacting prospective bidders is costly and the bidders' values are correlated. Although full surplus extraction is, in general, impossible, we can construct a search mechanism that fully extracts the surplus with an arbitrarily high probability.
Original language | English |
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Pages (from-to) | 94-100 |
Number of pages | 7 |
Journal | Economics Letters |
Volume | 93 |
Issue number | 1 |
DOIs | |
State | Published - Oct 2006 |
Keywords
- Correlated values
- Full surplus extraction
- Optimal auction
- Search costs
- Search mechanism