An Efficient and Incentive Compatible Dynamic Auction for Multiple Complements

S-Tier
Journal: Journal of Political Economy
Year: 2014
Volume: 122
Issue: 2
Pages: 422 - 466

Authors (2)

Ning Sun (not in RePEc) Zaifu Yang (University of Macau)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

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

Abstract

This article proposes an efficient and incentive compatible dynamic auction for selling multiple complementary goods. The seller has reserve prices. The auctioneer announces a current price for every bundle of goods and a supply set of goods, every bidder responds with a set of goods demanded at these prices, and the auctioneer adjusts prices. We prove that even when bidders can exercise their market power strategically, this dynamic auction always induces them to bid truthfully, resulting in an efficient allocation, its supporting Walrasian equilibrium price for every bundle of goods, and a generalized Vickrey-Clarke-Groves payment for every bidder.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/674550
Journal Field
General
Author Count
2
Added to Database
2026-01-29