Publications
Publications
- Economics Letters
Participation Constraints in the Vickrey Auction
By: Jerry R. Green and Jean-Jacques Laffont
Abstract
Economic agents are characterized by two privately observable parameters: their willingness to pay for an item being auctioned, and their reservation utility level which must be exceeded, in expectation, to induce them to participate in this auction. This creates a situation in which the distribution of willingnesses to pay among the bidders is endogenous. For the case in which the parameters are jointly uniformly distributed, the existence of an equilibrium is proven and characterized.
Citation
Green, Jerry R., and Jean-Jacques Laffont. "Participation Constraints in the Vickrey Auction." Economics Letters 16, nos. 1-2 (1984): 31–36.