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Auctioneer's Discretion in Combinatorial Auctions

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  • Hitoshi Matsushima

    (Graduate School of Economics, The University of Tokyo, Tokyo)

Abstract

We argue that in order to achieve the VCG outcomes in combinatorial auctions, the auctioneer does not need to make a full contractual agreement on the protocol with participants. We can leave the detail of its design to the auctioneer's discretion. The auctioneer can even make it contingent on unverifiable information. We consider general dynamical protocols termed price-demand procedures, and introduce representative valuation functions, which are, with connectedness and revealed preferences, calculated easily from the occurred history. It is sufficient to examine whether the efficient allocations with and without any single buyer associated with the representative valuation functions were revealed.

Suggested Citation

  • Hitoshi Matsushima, 2010. "Auctioneer's Discretion in Combinatorial Auctions," CARF F-Series CARF-F-293, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo, revised Sep 2012.
    • Handle: RePEc:cfi:fseres:cf293
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    References listed on IDEAS

    as
    1. Hitoshi Matsushima, 2010. "Price-Based Combinatorial Auction Design: Representative Valuations," KIER Working Papers 742, Kyoto University, Institute of Economic Research.
    2. repec:cup:cbooks:9780521551847 is not listed on IDEAS
    3. Hitoshi Matsushima, 2011. "Price-Based Combinatorial Auction: Connectedness and Representative Valuations," CARF F-Series CARF-F-261, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo.
    4. Hitoshi Matsushima, 2005. "On Detail‐Free Mechanism Design And Rationality," The Japanese Economic Review, Japanese Economic Association, vol. 56(1), pages 41-54, March.
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