A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2003; you can also visit the original URL.
The file type is
We analyze optimal auction design in the presence of negative externalities. We assume that externalities are a function of both the valuation of the agent who suffers it and the valuation of the agent who obtains the good. This introduces two technical difficulties: the reservation utility of each bidder becomes type-dependent and the equilibrium utility is not necessarily increasing in the agent's valuation. We characterize the properties of the optimal mechanism when externalities aredoi:10.2139/ssrn.1031532 fatcat:a7a6ofeuzbhjxhhas4kldoulcu