Interim efficient auctions with interdependent valuations

2012-05-01
We provide a characterization of interim efficient auctions and examine their properties in the presence of informational interdependent valuations. We show that buyers can be awarded the auctioned item less often than the efficient level. We also show that buyers obtain the item more often as the degree of heterogeneity in preferences increases, even though profitability of trade does not depend on the heterogeneity in preferences.
JOURNAL OF ECONOMICS

Suggestions

The scope of auctions in the presence of downstream interactions and information externalities
Koska, Ahmet Onur; Onur, Ilke; Staehler, Frank (Springer Science and Business Media LLC, 2018-10-01)
We scrutinize the scope of auctions for firm acquisitions in the presence of downstream interactions and information externalities. We show that no mechanism exists that allows an investor to acquire a low-cost firm under incomplete information: a separating auction implies adverse selection and relies substantially on commitment to allocation and transfer rules. A pooling auction serves as a commitment device against ex-post opportunistic behavior and alleviates adverse selection. It can earn the investor ...
Stochastic optimization applied to self-financing portfolio: does bequest matter?
Gazioglu, Saziye; Bastiyali-Hayfavi, Azize (Informa UK Limited, 2010-01-01)
The article studies stochastic optimization of an intertemporal consumption model to allocate financial assets between risky and risk-free assets. We use a stochastic optimization technique, in which utility is maximized subject to a self-financing portfolio constraint. The papers in literature have estimated the errors of Euler equations using data from financial markets. It has been shown that it is sufficient to test the first order Euler equation implied by the model. However, they all assume a constant...
Information Producers and Valuation: Evidence from Real Estate Markets
Downs, David H.; Güner, Zehra Nuray (Springer Science and Business Media LLC, 2012-01-01)
This paper examines valuation and its relation to information production by licensed appraisers across real estate markets. The testable implications are discussed for either a peer monitoring or a crowding out effect in the data. The empirical model is estimated with data for all 50 US states and DC covering the sample period from 1999 to 2008. While analysis is primarily cross-sectional and not causal, the evidence is consistent with theory stating that the minimum quality associated with residential lice...
Commercial Real Estate, Information Production and Market Activity
Downs, David H.; Güner, Zehra Nuray (Springer Science and Business Media LLC, 2013-02-01)
This paper addresses several issues related to the production of information across commercial real estate markets. The purpose is to determine the extent to which factors of production might complement or substitute for one another. A simple model is presented to illustrate the potential trade-offs between appraisal- and transactions-based information production. A series of empirical tests are performed on a panel data set constructed for 51 markets covering 9 years, 2001 through 2009. The number of comme...
Other-regarding preferences in organizational hierarchies
Saygili, Kemal; Küçükşenel, Serkan (Springer Science and Business Media LLC, 2019-04-01)
In this paper, we provide new theoretical insights about the role of collusion in organizational hierarchies by combining the standard principal-supervisor-agent framework with a theory of social preferences. Extending Tirole's (J Law Econ Organ 2(2):181-214, 1986) model of hierarchy with the inclusion of Fehr and Schmidt (Q J Econ 114(3):817-868, 1999) type of other-regarding preferences, the links between inequity aversion, collusive behavior and changes in optimal contracts are studied. It turns out that...
Citation Formats
S. Küçükşenel, “Interim efficient auctions with interdependent valuations,” JOURNAL OF ECONOMICS, pp. 83–93, 2012, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/47783.