Auction Design without Commitment

We study auction design when parties cannot commit to the mechanism. The seller may change the rules of the game any number of times and the buyers may choose their outside option at any stage of the game. A dynamic consistency condition and an optimality condition property are defined to characterize the seller's mechanism selection behavior. The unique stationary mechanism selection rule that meets the conditions is the English auction.

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Year of publication:	2009-03
Authors:	Vartiainen, Hannu
Institutions:	Turun Kauppakorkeakoulu, Turun Yliopisto
Subject:	auctions \| commitment \| consistency \| one-deviation property \| stationarity

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Extent:	application/pdf
Series:	Discussion Papers. - ISSN 1796-3133.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 44 2 pages long
Classification:	C72 - Noncooperative Games ; D44 - Auctions ; D78 - Positive Analysis of Policy-Making and Implementation
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005706069