AssignmentwithMoneyShort145

AssignmentwithMoneyShort145 - Multi-Unit Auction Ichiro...

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Unformatted text preview: Multi-Unit Auction Ichiro Obara UCLA March 8, 2010 Obara (UCLA) Multi-Unit Auction March 8, 2010 1 / 20 Multi-Unit Auction Multi-Unit Auction Obara (UCLA) Multi-Unit Auction March 8, 2010 2 / 20 Multi-Unit Auction Assignment with money Assignment with money We studied how to allocate many goods in room assignment problems and matching problems. We used preferences rather than monetary values. In auction, only one good is allocated. Each bidders preference is represented by his or her value. Can we use auctions to allocate many goods? Yes. We briefly discuss the notion of efficiency in this case and introduce a mechanism (a type of auction) to implement an efficient allocation. Obara (UCLA) Multi-Unit Auction March 8, 2010 3 / 20 Multi-Unit Auction Assignment with money Assignment with money We focus on the following special environment. The set of individuals is N = { 1 ,..., N } . Each individual needs just one good (call it house). The set of available houses is M = { h 1 ,..., h M } , M N , owned by one seller. Individual j s utility from h i is v i , j > 0. If individual j buys h i and pays p , then j s payoff is v i , j- p . Assume that the sellers utility from each house is 0. Obara (UCLA) Multi-Unit Auction March 8, 2010 4 / 20 Multi-Unit Auction Efficient Allocation Efficient Allocation An allocation : M N assigns each house to one individual. An allocation is efficient if there is no other that makes everyone weakly better off and someone strictly better off. Obara (UCLA) Multi-Unit Auction March 8, 2010 5 / 20 Multi-Unit Auction Efficient Allocation Efficient Allocation Efficient allocations are different when utility can be measured by money.money....
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This note was uploaded on 04/25/2010 for the course ECON 145 taught by Professor Obara during the Winter '10 term at UCLA.

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AssignmentwithMoneyShort145 - Multi-Unit Auction Ichiro...

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