In this paper we study the problem of ecient production and allocation of indi- visible objects among a set of consumers. We assume that the agents' preferences depend on the bundle of objects and the quantity of money they consume. Further- more, we assume that preferences are quasilinear in...

In our framework, when a buyer does not obtain the auctioned object, he is no longer indifferent about the identity of the winner (i.e., eyternal effects are present). Buyer i's preferences are characterized by an N-dimensional vector t^i = (t1^i, t2^i,..,tN^i). The coordinate ti^i can be...