This paper deals with the optimal design of resource allocation mechanisms in the presence of asymmetric information. A buyer's valuation function is allowed to depend on the characteristics of other buyers as well as his own and sufficient conditions are provided under which the seller can extract the full surplus from the buyers in an "ex post Nash" equilibrium. The result is then applied to the important problem of optimal auction design.
MLA
Cremer, Jacques, and Richard P. McLean. “Optimal Selling Strategies under Uncertainty for a Discriminating Monopolist when Demands are Interdependent.” Econometrica, vol. 53, .no 2, Econometric Society, 1985, pp. 345-362, https://www.jstor.org/stable/1911240
Chicago
Cremer, Jacques, and Richard P. McLean. “Optimal Selling Strategies under Uncertainty for a Discriminating Monopolist when Demands are Interdependent.” Econometrica, 53, .no 2, (Econometric Society: 1985), 345-362. https://www.jstor.org/stable/1911240
APA
Cremer, J., & McLean, R. P. (1985). Optimal Selling Strategies under Uncertainty for a Discriminating Monopolist when Demands are Interdependent. Econometrica, 53(2), 345-362. https://www.jstor.org/stable/1911240
We are deeply saddened by the passing of Kate Ho, the John L. Weinberg Professor of Economics and Business Policy at Princeton University and a Fellow of the Econometric Society. Kate was a brilliant IO economist and scholar whose impact on the profession will resonate for many years to come.
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