Surplus Creation and Extraction Under Structural Adjustment: Turkey, 1980-1992

Structural Adjustment in Fiji under the Interim Government, 1987–1992

This article critically assesses the success of market-led structural adjustment in Fiji. After reviewing the rationale behind structural adjustment programs itexamines the economic policies of Fiji’s Interim Government between 1987 and1992, demonstrating that such policies were both consistent with structural adjustment and represented confirmation of a change in economic policy. The e...

Subtle price discrimination and surplus extraction under uncertainty

This paper provides a solution to Proebsting’s Paradox, an argument that appears to show that the investment rule known as the Kelly criterion can lead a decision maker to invest a higher fraction of his wealth the more unfavorable the odds he faces are and, as a consequence, risk an arbitrarily high proportion of hiswealth on the outcome of a single event. The paper shows that a large class of...

A dynamic mechanism and surplus extraction under ambiguity

We study the question of auction design in an IPV setting characterized by ambiguity. We assume that the preferences of agents exhibit ambiguity aversion; in particular, they are represented by the epsilon-contamination model. We show that a simple variation of a discrete Dutch auction can extract almost all surplus. This contrasts with optimal auctions under IPV without ambiguity as well as wi...

Genericity and Robustness of Full Surplus Extraction

Information acquisition and full surplus extraction

It is well-known that when agents’ types are correlated, the mechanism designer can extract the entire surplus. This creates an incentive for agents to acquire information about other agents’ types. Robust lotteries (are payment schemes that) support full extraction and partially robust lotteries support efficient implementation in the presence of information acquisition opportunities. Necessar...