Matching Items (3)
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- All Subjects: Auctions
- Creators: Manelli, Alejandro
Description
Buyers have private information on auctioning divisible goods. Linearity could be a useful property on measuring their marginal utility on those goods or on their bidding strategies under such a share auction environment. This paper establishes an auction model with independent private-values paradigm (IPVP) where bidders have linear demand. A mechanism design approach is applied to explore the optimal share auction in this model. I discuss the most popular auction formats in practice, including Vickrey auction (VA), uniform-price auction (UPA) and discriminatory price auction (DPA). The ex-post equilibriums on explicit solutions are achieved. I found VA does not generally constitute an optimal mechanism as expected even in a symmetric scenario. Furthermore, I rank the different auction formats in terms of revenue and social efficiency. The more private information bidders keep, the lower revenue VA generates to seller, and it could be even inferior to UPA or DPA. My study aggregates dispersed private information with linearity and is robust to distributional assumption.
ContributorsWang, Mian (Author) / Manelli, Alejandro (Thesis advisor) / Arizona State University (Publisher)
Created2014
Description
This dissertation presents three essays in economics. Firstly, I study the problem of allocating an indivisible good between two agents under incomplete information. I provide a characterization of mechanisms that maximize the sum of the expected utilities of the agents among all feasible strategy-proof mechanisms: Any optimal mechanism must be a convex combination of two fixed price mechanisms and two option mechanisms. Secondly, I study the problem of allocating a non-excludable public good between two agents under incomplete information. An equal-cost sharing mechanism which maximizes the sum of the expected utilities of the agents among all feasible strategy-proof mechanisms is proved to be optimal. Under the equal-cost sharing mechanism, when the built cost is low, the public good is provided whenever one of the agents is willing to fund it at half cost; when the cost is high, the public good is provided only if both agents are willing to fund it. Thirdly, I analyze the problem of matching two heterogeneous populations. If the payoff from a match exhibits complementarities, it is well known that absent any friction positive assortative matching is optimal. Coarse matching refers to a situation in which the populations into a finite number of classes, then randomly matched within these classes. The focus of this essay is the performance of coarse matching schemes with a finite number of classes. The main results of this essay are the following ones. First, assuming a multiplicative match payoff function, I derive a lower bound on the performance of n-class coarse matching under mild conditions on the distributions of agents' characteristics. Second, I prove that this result generalizes to a large class of match payoff functions. Third, I show that these results are applicable to a broad class of applications, including a monopoly pricing problem with incomplete information, as well as to a cost-sharing problem with incomplete information. In these problems, standard models predict that optimal contracts sort types completely. The third result implies that a monopolist can capture a large fraction of the second-best profits by offering pooling contracts with a small number of qualities.
ContributorsShao, Ran (Author) / Manelli, Alejandro (Thesis advisor) / Chade, Hector (Thesis advisor) / Schlee, Edward (Committee member) / Kovrijnykh, Natalia (Committee member) / Arizona State University (Publisher)
Created2011
Description
I study the design of two different institutions to evaluate the welfare implications
of counterfactual policies. In particular, I analyze (i) the problem of assigning
students to colleges (majors) in a centralized admission system; and (ii) an auction
where the seller can use securities to determine winner’s payment, and bidders
suffer negative externalities. In the former, I provide a novel methodology to
evaluate counterfactual policies when the admission mechanism is manipulable.
In the latter, I determine which instrument yields the highest expected revenue
from the class of instruments that combines cash and equity payments.
of counterfactual policies. In particular, I analyze (i) the problem of assigning
students to colleges (majors) in a centralized admission system; and (ii) an auction
where the seller can use securities to determine winner’s payment, and bidders
suffer negative externalities. In the former, I provide a novel methodology to
evaluate counterfactual policies when the admission mechanism is manipulable.
In the latter, I determine which instrument yields the highest expected revenue
from the class of instruments that combines cash and equity payments.
ContributorsHernandez Chanto, Allan Roberto (Author) / Manelli, Alejandro (Thesis advisor) / Friedenberg, Amanda (Committee member) / Chade, Hector (Committee member) / Arizona State University (Publisher)
Created2017