Optimal mechanisms for an auction mediator

B-Tier
Journal: International Journal of Industrial Organization
Year: 2011
Volume: 29
Issue: 4
Pages: 426-431

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We consider a dynamic auction environment with a long-lived seller and short-lived buyers mediated by a third party. A mediator has incomplete information about traders' values and selects an auction mechanism to maximize her expected revenue. We characterize mediator-optimal mechanisms and show that an optimal mechanism has a simple implementation as a Vickrey auction with a reserve price where the seller pays to the mediator only a fixed percentage from the closing price.

Technical Details

RePEc Handle
repec:eee:indorg:v:29:y:2011:i:4:p:426-431
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25