The Full Employment Surplus Revisited

Labor Surplus Revisited

Unskilled labor is the abundant resource in many developing countries, especially at an early stage of their development. Yet, even as at given technologies labor markets have not cleared, neo-classical economists have rejected the notion of an institutional or bargaining wage not based on competitive full employment marginal productivity fundamentals. This paper puts to rest some objections to...

Full Employment

Ex-Post Full Surplus Extraction, Straightforwardly

Consider an estimate of the common value of an auctioned asset that is symmetric in the bidders’types. Such an estimate can be represented solely in terms of the order statistics of those types. This representation forms the basis for a pricing rule yielding truthful bidding as an equilibrium, whether bidders’types are a¢ liated or independent. We highlight the link between the estimator and fu...

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...