On the value of a well chosen bit to the seller in an auction

B. Hajek
2005 Proceedings. International Symposium on Information Theory, 2005. ISIT 2005.  
A central fact in the theory of optimal auction design is that the seller of a single object in an auction with n bidders, having independent, random valuations, typically cannot extract the full maximum value of the object from the buyers. We show that if the seller has access to a single bit of information, even if noisy, then the seller can extract full value. The work is meant to explore the use of information measures in mechanism design problems.
doi:10.1109/isit.2005.1523341 dblp:conf/isit/Hajek05 fatcat:mwizxdwuwrejrpbr6gg4r4b7xu