Research Summary
Research Summary
Internet Auctions for Close Substitutes
Description
(with Eric Budish)
This is mainly an experimental project where we compare many auction designs in a market for close substitutes. We hypothesize some information will not get to market if there is sequential bidding and/or a hard close, and that this will lead to an inefficient allocation of goods and a loss of surplus.
The mechanism we propose is very similar to a double auction, allowing for a package of XOR heterogeneous bids.