Breitmoser, Yves (2011): Binomial menu auctions in government formation.

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Abstract
In a menu auction, players submit bids for all choices the auctioneer A can make, and A then makes the choice that maximizes the sum of bids. In a binomial menu auction (BMA), players submit acceptance sets (indicating which choices they would support), and A chooses the option that maximizes his utility subject to acceptance of the respective players. Monetary transfers may be implicit, but players may also bid by offering "favors" and the like. BMAs provide a unified representation of both monetary and nonmonetary bidding, which I apply to model government formation. First, I analyze general BMAs, characterize the solution under complete information and establish outcome uniqueness (for both, sealed bid and Dutch formats). Second, in case monetary transfers are possible, BMAs are shown to implement VCG mechanisms. Finally, in case transfers are impossible, BMAs extend the model of protocoalition bargaining and are specifically applied to government formation.
Item Type:  MPRA Paper 

Original Title:  Binomial menu auctions in government formation 
Language:  English 
Keywords:  menu auction; demand commitment; protocoalition bargaining; VCG mechanism 
Subjects:  C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C78  Bargaining Theory ; Matching Theory D  Microeconomics > D4  Market Structure, Pricing, and Design > D44  Auctions C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C72  Noncooperative Games 
Item ID:  28576 
Depositing User:  Yves Breitmoser 
Date Deposited:  04. Feb 2011 08:01 
Last Modified:  17. Mar 2015 22:33 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/28576 