-unit, multi-bid uniform auction, modelled as a Bayesian game of incomplete information. At the auction each firm anticipates his … as their bidding strategies and it precludes the auction from generating a cost-effective allocation of permits, as it … would occur in simpler auction models. Auctioning tends to be more cost-effective than grandfathering when the firms' costs …

We propose a dynamic auction mechanism for efficiently allocating multiple heterogeneous indivisible goods. These goods … the auction, the auctioneer announces the current prices for all items, bidders respond by reporting their demands at … their market power, this dynamic auction always induces the bidders to bid truthfully as price-takers, yields an efficient …

-cost firm under incomplete information: a separating auction implies adverse selection and relies substantially on commitment to … allocation and transfer rules. A pooling auction serves as a commitment device against ex-post opportunistic behavior and … alleviates adverse selection. It can earn the investor a higher expected payoff than a separating auction, even when consistency …

, i.e., the first best, is not implementable. Our first main result is that the open ascending auction is not second best … because it is prone to rushes, i.e., all active bidders quitting simultaneously, that undermine its efficiency. Our second … main result is that the second best can be implemented with a two-round auction used in real-life privatizations. We also …

-unit, multi-bid uniform auction, modelled as a Bayesian game of incomplete information. At the auction each firm anticipates his … as their bidding strategies and it precludes the auction from generating a cost-effective allocation of permits, as it … would occur in simpler auction models. Auctioning tends to be more cost-effective than grandfathering when the firms' costs …