Partnerships and double auctions with interdependent valuations

In a symmetric independent private values setting a sealed-bid double auction dissolves a partnership e¢ciently. This well known result remains valid in a model with interdependent valuations. However, if the interdependent components of valuations are large agents might prefer not to participate in a double auction. Therefore a simple extention of the rules of double-auctions is suggested that ensures participation. Even though these modi...ed double auctions are not incentive e¢cient, they still realize gains from trade and can be implemented without knowledge about the model’s speci...cations.