EX ANTE EFFICIENT MECHANISM WITH PRIVATE ENTRY COSTS

C-Tier
Journal: Economic Inquiry
Year: 2020
Volume: 58
Issue: 3
Pages: 1531-1541

Authors (3)

Xin Feng (not in RePEc) Jingfeng Lu (National University of Singapo...) Yeneng Sun (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies ex ante efficient resource allocation mechanism in an environment where agents endowed with their private values must incur private entry costs to participate. Due to the nature of this bidimensional screening problem and the difficulty in fully characterizing all implementable endogenous entries, the domain of the related social planner's problem that is essential for establishing the existence of efficient mechanism needs to be carefully designed. We find that a second‐price auction among the entrants with a reserve price equal to the seller's valuation is ex ante efficient, and any ex ante efficient mechanism must be ex post efficient. (JEL D44, D61, D82)

Technical Details

RePEc Handle
repec:bla:ecinqu:v:58:y:2020:i:3:p:1531-1541
Journal Field
General
Author Count
3
Added to Database
2026-01-25