Optimal Auction Design

@article{Myerson1981OptimalAD,
  title={Optimal Auction Design},
  author={Roger B. Myerson},
  journal={Math. Oper. Res.},
  year={1981},
  volume={6},
  pages={58-73}
}
  • R. Myerson
  • Published 1 February 1981
  • Economics
  • Math. Oper. Res.
This paper considers the problem faced by a seller who has a single object to sell to one of several possible buyers, when the seller has imperfect information about how much the buyers might be willing to pay for the object. The seller's problem is to design an auction game which has a Nash equilibrium giving him the highest possible expected utility. Optimal auctions are derived in this paper for a wide class of auction design problems. 
View via Publisher
cs.princeton.edu
5,572 Citations
Highly Influential Citations
1,011
Background Citations
2,808
Methods Citations
979
Results Citations
201

5,572 Citations

Optimal Auctions When a Seller is Bound to Sell to Collusive Bidders
I consider optimal auctions for a seller who is bound to sell a single item to one of two potential buyers, organized in a ‘well-coordinated’ cartel. I show that, even though the seller cannot deter…
An Optimal Auction for Complements
Abstract This paper considers the optimal selling mechanism for complementary items. When buyers are perfectly symmetric, the optimal procedure is to bundle the items and run a standard auction. In…
Optimal Mechanisms for an Auction Website
  • Wang Ping-ping
  • Economics
    2008 4th International Conference on Wireless Communications, Networking and Mobile Computing
  • 2008
This paper considers a multi-period auction with a seller who has a single object for sale, a large population of potential buyers, and an auction Web site of the trade. The seller and every buyer…
Shill bidding and optimal auctions
A single object is for sale to N asymmetric buyers in the independent private values setting by means of an English auction. We consider implications of seller’s active participation in the bidding…
Optimal auction design with endogenously correlated buyer types
This paper studies optimal auction design when the seller can increase the buyers’ valuations through an unobservable ex ante investment. The key insight is that the optimal mechanism may have the…
The role of optimal threats in auction design
Optimal matching auctions
Auctions with entry
Optimal Auction Design for Heterogeneous Objects
  • Eiichiro Kazumori
  • Economics
  • 2004
This paper studies optimal auction for heterogenous objects when bidders have multidimensional independent types from continuous distributions. A new convergence result shows that the optimal auction…
Optimal Auction Design in a Multi-unit Environment : The Case of Sponsored Search Auctions
We characterize the optimal (revenue maximizing) auction for sponsored search advertising. We show that a search engine’s optimal reserve price is independent of the number of bidders. Using…
...
...

References

SHOWING 1-10 OF 20 REFERENCES
Incentive Compatibility and the Bargaining Problem
Collective choice problems are studied from the Bayesian viewpoint. It is shown that the set of expected utility allocations which are feasible with incentive-compatible mechanisms is compact and…
Toward a study of bidding processes : part IV, games with unknown costs
This paper represents a continuation of three previous papers [1-.3] in the study of competitive bidding processes. It treats the case where a bidder's knowledge of his competitor's cost i s given by…
A Convergence Theorem for Competitive Bidding with Differential Information
IN THIS PAPER we investigate the properties of the winning bid in a sealed bid tender auction where each player has private information. We find that it is possible for the winning bid to converge in…
Competitive Bidding: A Comprehensive Bibliography
This paper lists, alphabetically by first author, over 100 papers and books dealing with competitive bidding.
A Bidding Model of Perfect Competition
I demonstrate in this paper that price formation via the procedure of competitive bidding satisfies a version of the law of large numbers, in both the probabilistic sense and the economic sense. That…
Counterspeculation, Auctions, And Competitive Sealed Tenders
Models for competitive bidding under uncertainty
Games with Incomplete Information Played by “Bayesian” Players Part II. Bayesian Equilibrium Points
Part I of this paper has described a new theory for the analysis of games with incomplete information. It has been shown that, if the various players' subjective probability distributions satisfy a…
Games with Incomplete Information Played by 'Bayesian' Players, Part III. The Basic Probability Distribution of the Game
Parts I and II of this paper have described a new theory for the analysis of games with incomplete information. Two cases have been distinguished: consistent games in which there exists some basic…
Convex Analysisの二,三の進展について
...
...