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A vaccine auction

Author

Listed:
  • Romans Pancs

    (The University of Rochester
    ITAM)

Abstract

The paper describes an auction for selling vaccines in a pandemic. The environment borrows from the problem of allocating positions for sponsored links on web pages with search results but recognizes the externalities that one man’s vaccination imposes on another. The auction is the pivot Vickrey–Clarke–Groves mechanism and, so, inherits its properties: efficiency and strategy-proofness. Crucially, the auction is designed to let each bidder bid not only on his own behalf but also on behalf of others. The auction requires neither the bidders nor the auctioneer to forecast the efficacy of the vaccine or the evolution of the pandemic.

Suggested Citation

  • Romans Pancs, 2024. "A vaccine auction," Review of Economic Design, Springer;Society for Economic Design, vol. 28(4), pages 763-780, December.
    • Handle: RePEc:spr:reecde:v:28:y:2024:i:4:d:10.1007_s10058-024-00359-9
    DOI: 10.1007/s10058-024-00359-9
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    References listed on IDEAS

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    More about this item

    Keywords

    Vaccine auction; Position auction; Pivot VCG;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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