Header

UZH-Logo

Maintenance Infos

Optimal Design and p-Concavity


Ewerhart, Christian (2011). Optimal Design and p-Concavity. Working paper series / Institute for Empirical Research in Economics No. 409, University of Zurich.

Abstract

Some of the most beautiful results in mechanism design depend crucially on Myerson's (1981) regularity condition. E.g., the second-price auction with reserve price is revenue maximizing only if the type distribution is regular. This paper offers two main results. First, an interpretation of regularity is developed in terms of being the next to fail. Second, using expanded concepts of concavity, a tight sufficient condition on the density function is formulated. New examples of parameterized distributions are shown to be regular. Applications include standard design problems, optimal reserve prices, the analysis of bidding data, and multidimensional types.

Abstract

Some of the most beautiful results in mechanism design depend crucially on Myerson's (1981) regularity condition. E.g., the second-price auction with reserve price is revenue maximizing only if the type distribution is regular. This paper offers two main results. First, an interpretation of regularity is developed in terms of being the next to fail. Second, using expanded concepts of concavity, a tight sufficient condition on the density function is formulated. New examples of parameterized distributions are shown to be regular. Applications include standard design problems, optimal reserve prices, the analysis of bidding data, and multidimensional types.

Statistics

Downloads

414 downloads since deposited on 25 Nov 2011
7 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
Dewey Decimal Classification:330 Economics
JEL Classification:D82, D44, D86, C16
Language:English
Date:May 2011
Deposited On:25 Nov 2011 10:13
Last Modified:07 Dec 2017 09:53
Series Name:Working paper series / Institute for Empirical Research in Economics
ISSN:1424-0459
Additional Information:Revised version
Official URL:http://www.econ.uzh.ch/wp.html

Download

Download PDF  'Optimal Design and p-Concavity'.
Preview
Filetype: PDF
Size: 412kB