Exploring the limits of incentive compatibility and allocative efficiency in complex economic environments

by Markus Reinhardt

Institution: HHL Leipzig Graduate School of Management
Degree: PhD
Year: 2014
Record ID: 1099534
Full text PDF: http://nbn-resolving.de/urn:nbn:de:bsz:14-qucosa-147728


In this dissertation auction formats are developed and discussed that focus on three specific economic environments. Regarding the impossibility results from mechanism design, the main task for the implementation of auction designs is to balance allocative efficiency and incentive compatibility – the main characteristics a mechanism should provide. Therefore, the dissertation investigates the limits of conceivable relaxations of allocative efficiency and incentive compatibility for complex settings such as double auctions, interdependent-valuation environments and electricity market designs. The overall aim is to carefully weigh up the advantages and disadvantages for either relaxing allocative efficiency or respectively incentive compatibility.