Said, Maher (2009): Auctions with Dynamic Populations: Efficiency and Revenue Maximization.
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We study a setting where objects and privately-informed buyers arrive stochastically to a market. A seller in this setting faces a sequential allocation problem with a dynamic population. We derive both efficient and revenue-maximizing incentive compatible direct mechanisms. Our main result shows that the sequential ascending auction is a simple indirect mechanism that achieves these desirable objectives. We construct equilibria in memoryless strategies where, in every period, bidders reveal all private information. These equilibria are outcome equivalent to the direct mechanisms. In contrast to static settings, sequential second-price auctions cannot yield these outcomes, as they do not reveal sufficient information.
|Item Type:||MPRA Paper|
|Original Title:||Auctions with Dynamic Populations: Efficiency and Revenue Maximization|
|Keywords:||Dynamic mechanism design; Sequential allocation; Random arrivals; Revenue equivalence; Indirect mechanisms; Sequential ascending auctions.|
|Subjects:||D - Microeconomics > D4 - Market Structure and Pricing > D44 - Auctions
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search; Learning; Information and Knowledge; Communication; Belief
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
|Depositing User:||Maher Said|
|Date Deposited:||22. Aug 2009 19:17|
|Last Modified:||20. Feb 2013 02:41|
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Auctions with Dynamic Populations: Efficiency and Revenue Maximization. (deposited 20. Nov 2008 01:21)
Auctions with Dynamic Populations: Efficiency and Revenue Maximization. (deposited 30. Apr 2009 00:32)
Auctions with Dynamic Populations: Efficiency and Revenue Maximization. (deposited 05. May 2009 23:54)
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- Auctions with Dynamic Populations: Efficiency and Revenue Maximization. (deposited 05. May 2009 23:54)
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