Title :
On the value of a well chosen bit to the seller in an auction
Author_Institution :
Dept. of Electr. & Comput. Eng., Illinois Univ., Urbana, IL
Abstract :
A central fact in the theory of optimal auction design is that the seller of a single object in an auction with n bidders, having independent, random valuations, typically cannot extract the full maximum value of the object from the buyers. We show that if the seller has access to a single bit of information, even if noisy, then the seller can extract full value. The work is meant to explore the use of information measures in mechanism design problems
Keywords :
commerce; game theory; information theory; full maximum value; information measures; optimal auction design; Books; Context; Cost accounting; Data mining; Game theory; Linear programming; Marketing and sales; Painting; Probability distribution;
Conference_Titel :
Information Theory, 2005. ISIT 2005. Proceedings. International Symposium on
Conference_Location :
Adelaide, SA
Print_ISBN :
0-7803-9151-9
DOI :
10.1109/ISIT.2005.1523341