STICERD Economic Theory Seminars
TBC
Mihai Manea (Stony Brook University)
Thursday 12 November 2020 15:30 - 17:00
Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.
Unless otherwise specified, in-person seminars are open to the public.
Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.
About this event
We study the welfare consequences of allowing the mechanism designer to withhold or damage resources in the optimal mechanism for bilateral trade with independent private values. We show that withholding monetary transfers or withholding the good from both traders is never optimal. Similarly, damaging the good for the buyer cannot improve welfare. By contrast, damaging the good for the seller may improve welfare in the optimal mechanism. However, such welfare improvements are feasible only if the damage hurts seller types with lower initial valuations more severely.
Related
Economic Theory Seminars are held on Thursdays in term time at 15:30-17:00, both ONLINE and IN PERSON in SAL 3.05.
Seminar organisers: Dr Andrew Ellis and Dr Christopher Sandmann.
For further information please contact Sadia Ali: s.ali43@lse.ac.uk.
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