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Generalized Reduced‐Form Auctions: A Network‐Flow Approach
Author(s) -
Che YeonKoo,
Kim Jinwoo,
Mierendorff Konrad
Publication year - 2013
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.3982/ecta11405
Subject(s) - common value auction , interim , license , general partnership , variety (cybernetics) , computer science , set (abstract data type) , government (linguistics) , mathematical optimization , operations research , microeconomics , economics , finance , engineering , mathematics , artificial intelligence , linguistics , philosophy , archaeology , programming language , history , operating system
We 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.