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Optimal allocation with costly inspection and discrete types under ambiguity
(Taylor & Francis, 2017)
We consider the following problem: a principal has a good to allocate among a collection of agents who attach a private value to receiving the good. The principal, instead of using monetary transfers (i.e. charging the ...
Generalized second price auction is optimal for discrete types
We prove that a variant of the second price auction for the sale of a single good through a Bayesian incentive compatible mechanism that maximizes expected revenue of the seller is optimal when the type space is discrete. ...