Although the celebrated Vickrey auction is strategy-proof and guaranteed to achieve an efficient allocation in a singleobject auction, if there exists no outside party (i.e., a seller or an auctioneer) with the right to collect the payment, the collected payment will be wasted. Redistribution mechanisms try to redistribute the payment to participating agents as much as possible without violatin...

a r t i c l e i n f o a b s t r a c t JEL classification: C70 D44 D61 Keywords: Online auctions Posted price selling Buy-it-now Allocative inefficiency Random matching eBay auctions In an auction-style listing at eBay, sellers have the option to set a posted price (also known as buy-it-now price), which allows buyers to instantly purchase an item before the start of the auction. This paper prov...

We study the e ect of cheap talk between bidders on the outcome of a rst-price procurement game with N sellers in which bidding is costly. Although no side-payements or commitments are allowed, we show that the game admits a unique family of symmetric equilibria in which sellers use communication to collude on a subset of participants and/or to reveal information about their valuation. Contrary...

2 Basic Theory 4 2.1 Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.2 Arbitrage, State Prices, and Martingales . . . . . . . . . . . . 5 2.3 Individual Agent Optimality . . . . . . . . . . . . . . . . . . . 8 2.4 Habit and Recursive Utilities . . . . . . . . . . . . . . . . . . . 9 2.5 Equilibrium and Pareto Optimality . . . . . . . . . . . . . . . 12 2.6 Equilibrium ...

We study a fundamental problem in micro economics called optimal auction design: A seller wishes to sell an item to a group of self-interested agents. Each agent i has a privately known valuation vi for the object. Given a distribution on these valuations, the goal is to construct an optimal auction, i.e. a truth revealing protocol that maximizes the seller’s expected revenue. We study this pro...

We investigate the effects of market making on market performance, focusing on allocative efficiency as well as gains from trade accrued by background traders. We employ empirical simulationbased methods to evaluate heuristic strategies for market makers as well as background investors in a variety of complex trading environments. Our market model incorporates private and common valuation eleme...

To avoid checking unnecessary or irrelevant conditions of rules, the irrelevant values problem of the decision tree is addressed. We propose an algorithm to remove irrelevant conditions of rules in the process of converting the decision tree to rules according to the semantics of the decision tree. Since our algorithm depends only on the semantics of the decision tree, our algorithm can be inte...

The skyline query has proven to be an important tool in multi-criteria decision making and search space pruning. A skyline query returns the subset of points from a multidimensional dataset that are not dominated by any other point. Due to its wide applications, skyline query and its variants have been extensively studied in the past. However, skyline computation for incomplete domain, where po...

Should public assets such as infrastructure, education, and the environment earn the same return as private investments? We consider if time-inconsistent decisionmakers can gain from institutions that enforce cost-benefit rules on large projects that influence the economy as a whole. Long-term public investments provide commitment to current preferences, leading to investment biases in such ass...

In thiswork, theuseof type-2 fuzzy logic systemsas anovel approach forpredictingpermeability fromwell logs has been investigated and implemented. Type-2 fuzzy logic system is good in handling uncertainties, including uncertainties in measurements and data used to calibrate the parameters. In the formulation used, the value of a membership function corresponding to a particular permeability valu...