Mechanism Design

Micro

A Simple Screening Example

Independent Private Values Environment is a very important assumption,

$F$ describes the seller’s/ other buyers’ expected values about $v_i$ . Each buyer $i$ knows their own values but don’t know others’. The seller does not know any of the buyers’ values. So they need to depend on $F$ , which is a common knowledge for everyone.

There are three static auction types and two dynamic auction types.

Static:

1. First-Price Auction
2. All-Pay Auction
3. Second-Price Auction

Dynamic:

1. English Auction
2. Dutch Auction