Description

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.