Mixed Bundling Auctions

Jehiel, Philippe; Meyer-ter-Vehn, Moritz and Moldovanu, Benny (February 2006): Mixed Bundling Auctions. SFB/TR 15 Discussion Paper No. 141

Abstract

We study multi-object auctions where agents have private and additive valuations for heterogeneous objects. We focus on the revenue properties of a class of dominant strategy mechanisms where a weight is assigned to each partition of objects. The weights influence the probability with which partitions are chosen in the mechanism. This class contains efficient auctions, pure bundling auctions, mixed bundling auctions, auctions with reserve prices and auctions with pre-packaged bundles. For any number of objects and bidders, both the pure bundling auction and separate, efficient auctions for the single objects are revenue-inferior to an auction that involves mixed bundling.

• Item Type: Paper
• Faculties: Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems; Special Research Fields > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > A3 - Markt- und Auktionsdesign in komplexen Umgebungen
• Subjects: 300 Social sciences > 330 Economics
• Language: English