In auctions with externalities, it is well-known that the core can be empty, which is undesirable both in terms of … stability and fairness. Nevertheless, some auction outcome must be chosen. We separate deviations into two types: deviations by …

In auctions with externalities, the core can be empty, which is undesirable both in terms of stability and fairness. We …

We analyze optimal auction design in the presence of negative externalities. We assume that externalities are a … mechanism when externalities are quot;strongly decreasingquot;, quot;weakly decreasingquot; and quot;increasingquot; in the …

not to participate. Specifically, I assume that externalities enter in the cost function of the nonparticipating … landholders. I show that, in the case of negative externalities, the government will implement a transfer function which is …

We scrutinize the scope of auctions in the presence of downstream interactions and information externalities by using …-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 …

This paper studies how bidding strategies and auction outcomes are affected by downstream competition, particularly for … USFS timber auctions. This is done by extending the auction estimation literature to a model where outside competition … affects bidding behavior in that bidders are then not only concerned with whether they win the auction, but also the identity …

informational externalities (PIE). This assumption implies upward drifting price sequences at sequential auctions, which is … environment, in which the bidders' values can exhibit both PIE and NIE (negative informational externalities). The case of NIE can … bidders' expected values. We consider a general sequential auction mechanism that sells m identical objects through K (≤m …

as equilibrium phenomena of the ascending auction. In a series of experiments, we compare its performance to that of the … discriminatory auction. Strategic demand reduction is quite prevalent in the ascending auction even when entry by the newcomer … imposes a (large) negative externality on incumbents. As a result, the ascending auction performs worse than the …

efficient allocation of the objects for sale, especially when the bidders impose strong negative externalities upon each other …. This paper argues that these inefficiencies can be avoided by asking bidders prior to the auction to submit any public … before the auction itself takes place. …

This paper examines a Cournot game where capacity constraints are determined in an auction prior to the market … traced to the presence of externalities in the valuations. The modification of Ausubel & Milgrom (2002)'s generalized … ascending proxy auction developed in Ranger (2004) is shown to lead to an efficient allocation. It is efficient and …