Songzi Du (Simon Fraser University)
Kalai Family Workshop in Applied Microeconomics
Feb 15 2018
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Robust Mechanisms Under Common Valuation
I construct an informationally robust auction to sell a common-value good. I examine the revenue guarantee of an auction over all information structure of bidders and all equilibria. As the number of bidders gets large, the revenue guarantee of my auction converges to the full surplus, regardless of how information changes as more bidders are added. My auction also maximizes the revenue guarantee when there is a single bidder.
Keywords: robust mechanism, common value auction, full surplus extraction, large markets
JEL Codes: D44, D82