In a general framework with independent private values of the bidders, we propose a game, with a simple economic interpretation, that allows implementing the optimal auction outcome when the seller ignores the distributions of the different bidders' valuations. In this robust or detail-free implementation procedure, a second-price auction is organized and the winner volunteers a payment to the seller; this payment can then be challenged by another bidder who knows the distribution of the winner's valuation.

View the document

Center for Interuniversity Research and Analysis of Organizations
1130 rue Sherbrooke Ouest, suite 1400
Montréal, Québec (Canada) H3A 2M8
(514) 985-4000
(514) 985-4039

© 2019 CIRANO. All rights reserved.

Partner of :

Website Security Test