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Essays on Sequential Auctions and Dynamic Mechanism Design.

Essays on Sequential Auctions and Dynamic Mechanism Design.


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About the Book

This dissertation analyzes bidding behavior in dynamic auction markets and explores the implications of dynamic buyer populations for the optimal design of institutions and mechanisms. As is well known, auctions have become an integral part of modern economic interaction and a key feature in a variety of markets. A key feature common to many of these markets is their dynamic nature. In contrast to standard static auction models, the auctions that form a part of these economic interactions occur with great regularity, one after the other. Moreover, these interactions seldom involve exactly the same set of buyers in repeated competition. Rather, different buyers arrive to the market at different times, and participate in several auctions before their eventual departure. This dissertation investigates the implications of these market dynamics. In particular, the first chapter considers the effects of random arrivals of buyers to an auction market for stochastically equivalent objects. I show that these arrivals affect bidding behavior, and hence equilibrium prices, by altering the outside options of buyers already present on the market. I then study the impact of evolving market dynamics on the optimal bidding of buyers. In the second chapter, I examine the revelation of private information by buyers in sequential ascending auctions. I explore the manner in which this information is incorporated into bidding behavior, taking into account the possibility of additional buyers arriving in future periods. The third and final chapter considers the question of designing mechanisms for the optimal allocation of goods in an environment where the presence of buyers and objects is governed by a stochastic process. I characterize incentive compatible allocation rules and extend the revenue equivalence results of static mechanism design to this setting. I study both efficient and revenue-maximizing direct mechanisms, and show that the sequential ascending (English) auction serves as a natural indirect mechanism that yields equivalent outcomes.


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Product Details
  • ISBN-13: 9781243614247
  • Publisher: Proquest, Umi Dissertation Publishing
  • Publisher Imprint: Proquest, Umi Dissertation Publishing
  • Height: 246 mm
  • Weight: 249 gr
  • ISBN-10: 1243614242
  • Publisher Date: 01 Sep 2011
  • Binding: Paperback
  • Spine Width: 7 mm
  • Width: 189 mm


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