Introduction To Auction Theory

Description: Auction theory is now an important component of an economist's training. The techniques and insights gained from the study of auction theory provide a useful starting point for those who want to venture into the economics of information, mechanism design, and regulatory economics. This book provides a step-by-step, self-contained treatment of the theory of auctions. It allows students and readers with a calculus background to work through all the basic results, covering the basic independent-private-model; the effects of introducing correlation in valuations on equilibrium behaviour and the seller's expected revenue; mechanism design; and the theory of multi-object auctions. Review: Although the book focuses squarely on auctions, it is likely to be helpful in courses dealing with information economics generally. A particular virtue of the book is the tangible, hands-on, approach taken to explaining the revelation principle...a very helpful collection of core results and techniques. John Asker Economic Record Table of Contents: 1. Introduction; 2. Preliminaries; 3. Private Values; 4. Common Value; 5. Affiliated Values; 6. Mechanism Design; 7. Multiple Objects; A. Probability; B. Differential Equations; C. Affiliation; D. Convexity; References; Index