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This paper studies the welfare consequence of increasing trading speed in financial markets. We build and solve a dynamic trading model, in which traders receive private information of asset value over time and trade strategically with demand schedules in a sequence of double auctions. A...
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When goods are substitutes, the Vickrey auction produces efficient, core outcomes that yield competitive seller … revenues. In contrast, with complements, the Vickrey outcome, while efficient, is not necessarily in the core and revenue can … be very low. Non-core outcomes may be perceived as unfair since there are bidders willing to pay more than the winners …
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Many auctions involve the sale of heterogenous indivisible objects. Examples are wireless spectrum, delivery routes and airport time slots. Because of complementarities or substitution effects between the objects, bidders have preferences not just over individual items but over subsets of them....
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. We therefore study core selecting auctions, which boost revenue by setting payments so that no group of agents, including … combinatorial algorithm that finds an approximate bidder optimal core point with almost linear number of calls to the welfare …. We conclude that core pricing is implementable even for very time sensitive practical use cases such as realtime auctions …
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) coalitional equilibrium, describe a (cooperative) partition form game. A coalition is core-stable if the core of a suitable …
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