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Journal of Economic Theory
Volume 120, Issue 2, February 2005, Pages 175-205
 
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doi:10.1016/j.jet.2003.11.001    How to Cite or Link Using DOI (Opens New Window)
Copyright © 2003 Elsevier Inc. All rights reserved.

Equilibrium transformations and the Revenue Equivalence Theorem

Balázs SzentesE-mail The Corresponding Author

Department of Economics, University of Chicago, 1126 East 59th Street, Chicago, IL 60637, USA

Received 8 March 2003; 
Revised 4 November 2003. 
Available online 7 February 2004.

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Abstract

I develop a method that transforms an equilibrium strategy profile from one auction to another. The method is constructive and does not require complicated computation. This provides a new approach to revenue equivalence and extends the theorem to domains where it had not previously been known, in particular to simultaneous multiple object auctions with complete information and to auction environments having correlated private values and common values.

Author Keywords: Revenue equivalence; First price; Second price

D44; D82

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Journal of Economic Theory
Volume 120, Issue 2, February 2005, Pages 175-205
 
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