We make three contributions to the theory of contracting under asymmetric information. First, we establish a competitive analog to the revelation principle which we call the implementation principle. This principle provides a complete characterization of all incentive compatible, indirect...

Suppose a seller wants to sell $k$ similar or identical objects and there are $nk$ potential buyers. Suppose that buyers want only one object. (This is a reasonable assumption in the sale of condominiums or in the sale of government-owned residential units to low-income families). In this case,...