Optimal search auctions with correlated bidder types

Jacques Crémer, Yossi Spiegel*, Charles Z. Zheng

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations

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 languageEnglish
Pages (from-to)94-100
Number of pages7
JournalEconomics Letters
Volume93
Issue number1
DOIs
StatePublished - Oct 2006

Funding

FundersFunder number
National Science FoundationSES-0214471

    Keywords

    • Correlated values
    • Full surplus extraction
    • Optimal auction
    • Search costs
    • Search mechanism

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