A note on optimal allocation mechanisms

When the buyer's utility is non-linear in type, revenue-maximizing mechanisms for multiple goods may be random. This happens when the allocation rule obtained via pointwise optimization is not incentive compatible, which is possible even with strictly increasing virtual utilities.

MoreLess

Year of publication:	2009
Authors:	Figueroa, Nicols ; Skreta, Vasiliki
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 102.2009, 3, p. 169-173
Publisher:	Elsevier
Subject:	Mechanism design Optimal auctions Bunching

More details

Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005269750