Rent Extraction with Rich Type Spaces∗
نویسنده
چکیده
We characterize Revenue Maximizing Mechanisms in auction settings with `rich' type spaces where bidders obtain information from sources other than their own valuation. The focus of the paper is on the concept of weak Bayes-Nash implementation. By considering a relaxed problem, we provide an upper bound on Revenue Extraction that explicitly builds upon the richness of the information structure. We provide a condition under which this upper bound is attained, and also characterize a mechanism that does it. Whenever the optimal revenue is characterized, we show that it can be achieved with dominant strategy implementation. The characterization of Optimal Revenue reduces to the full surplus extraction result of Cremer and McLean (1985), when reduced to a standard setting.
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