Efficient Auctions and Interdependent Types

Dirk Bergemann, Stephen Morris, Satoru Takahashi
2012 The American Economic Review  
We consider the e¢ cient allocation of a single good with interdependent values in a quasi-linear environment. We present an approach to modelling interdependent preferences distinguishing between "payo¤ types" and "belief types" and report a characterization of when the e¢ cient allocation can be partially Bayesian implemented on a ...nite type space. The characterization can be used to unify a number of su¢ cient conditions for e¢ cient partial implementation in this classical auction
more » ... We report how a canonical language for discussing interdependent types -developed in a more general setting by Bergemann, Morris and Takahashi (2011) -applies in this setting and note by example that this canonical language will not allow us to distinguish some types in the payo¤ type -belief type language.
doi:10.1257/aer.102.3.319 fatcat:6kymshwuk5bq7heancegybbrhe