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Making efficient public good decisions using an augmented Ausubel auction

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  • Matt Van Essen

    (University of Alabama)

Abstract

We provide the generalization of Ausubel’s 2004 ascending bid auction to public good environments. Like its private good counterpart, the public good Ausubel auction encourages truthful revelation of preferences, is privacy preserving, and yields an equilibrium allocation that is outcome equivalent to the public good Vickrey auction. Other properties are not ideal in a public good setting. We discuss two such issues and propose an alternative dynamic auction which solves these problems.

Suggested Citation

  • Matt Van Essen, 2013. "Making efficient public good decisions using an augmented Ausubel auction," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 1(1), pages 57-68, May.
    • Handle: RePEc:spr:etbull:v:1:y:2013:i:1:d:10.1007_s40505-013-0007-3
    DOI: 10.1007/s40505-013-0007-3
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    References listed on IDEAS

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    More about this item

    Keywords

    Public goods; Clarke tax; Ausubel auction;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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