Econometrica: Nov 2013, Volume 81, Issue 6
Generalized Reduced‐Form Auctions: A Network‐Flow Approach
Yeon‐Koo Che, Jinwoo Kim, Konrad MierendorffWe develop a network‐flow approach for characterizing interim‐allocation rules that can be implemented by ex post allocations. Our method can be used to characterize feasible interim allocations in general multi‐unit auctions where agents face capacity constraints, both ceilings and floors. Applications include a variety of settings of practical interest, ranging from individual and group‐specific capacity constraints, set‐aside sale, partnership dissolution, and government license reallocation.
Log In To View Full Content