Resource title

Optimal Trading Mechanisms for an Informed Seller

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Resource description

We consider the situation where the owner of some good wants to sell the good to one of several potential buyers. We assume that the owner possesses private information about the buyers' valuations of the good, and analyze this model as an informed principal mechanism design model. In an undominated perfect Bayesian equilibrium of the model the seller gives the object to the person who values the object most, and receives a transfer payment from each potential buyer such that all ex-ante expected rents are extracted from the buyers.

Resource author

Rolf Tisljar

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22854

Resource license

Adapt according to the presented license agreement and reference the original author.