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We study full surplus extraction and implementation in dynamic environments. We exploit intertemporal correlations of agents' types to construct within-period ex post incentive compatible mechanisms. First, we formulate one-shot environments, in which a single agent has a hidden type and the...
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-standing concern in the literature. We tackle this problem by experimentally testing the performance of an FE auction, which is a … second-price (2P) auction with lotteries. In the FE treatment, overbid amounts given entry increased and entry rates … causes of failure in the FE, we take an evolutionary-game approach. The FE auction with risk-neutral bidders has exactly two …
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