This paper addresses the following question: Does competition enhance efficiency in markets with quality uncertainty? Using the mechanism design methodology, we characterize the maximal achievable level of efficiency in such markets, and then use this characterization to analyze how maximal...

This paper studies the impact of competition on the degree of inefficiency in lemons markets. More precisely, we characterize the second-best mechanism (i.e., the optimal mechanism with private information) in a stylized lemons market with finite numbers of buyers and sellers. We then study the...

We identify a sufficient class of coalitional form games with transferable utility for which prenucleolus coincides with the Shapley value. We then apply our result to simple games and to generalized queueing games.

We examine the tradeoffs between two variants of group strategyproofness, efficiency and budget balance in queueing models. In general, group strategyproofness is incompatible with efficiency and budget balance. Weakening budget balance to feasibility, we show that the incompatibility persists...