Efficient investment in a dynamic auction environment

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 75
Issue: 1
Pages: 104-119

Authors (3)

Daley, Brendan (not in RePEc) Schwarz, Michael (not in RePEc) Sonin, Konstantin (University of Chicago)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We analyze an environment in which biddersʼ private values change over time due to both private investments and exogenous shocks. We demonstrate that a highly-decentralized mechanism achieves efficiency. The mechanism requires a stage of costly public announcements (i.e., signaling) to induce efficient investment. For this reason, an equilibrium selection issue arises, but can be handled by a minor modification in the spirit of virtual implementation.

Technical Details

RePEc Handle
repec:eee:gamebe:v:75:y:2012:i:1:p:104-119
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25