Institutions, Exchange and Coordination

Auction and Revenue

About this lecture

There are many auction formats with different rules and properties. In order to choose among them, one must first characterize the seller’s objective. In this video David Ettinger takes us through the basics of the Revenue Equivalence Theorem and explains why it is not always possible to disentangle allocation and revenue issues.

References

Myerson, R. B. (1981). Optimal Auction Design. Mathematics of Operations Research, 6(1), 58–73.

Part of the IOE ecosystem

Governance and Regulation Chair, Université Paris-Dauphine – PSL Institutional & Organizational Economics Academy Society for Institutional & Organizational Economics