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Auctions with Untrustworthy Bidders

Braynov, Sviatoslav, Pavlov, Radoslav (2007)

Serdica Journal of Computing

The paper analyzes auctions which are not completely enforceable. In such auctions, economic agents may fail to carry out their obligations, and parties involved cannot rely on external enforcement or control mechanisms for backing up a transaction. We propose two mechanisms that make bidders directly or indirectly reveal their trustworthiness. The first mechanism is based on discriminating bidding schedules that separate trustworthy from untrustworthy bidders. The second mechanism is a generalization of...

Axiomatization of values of cooperative games using a fairness property

Andrzej Młodak (2005)

Applicationes Mathematicae

We propose new systems of axioms which characterize four types of values of cooperative games: the Banzhaf value, the Deegan-Packel value, the least square prenucleolus and the least square nucleolus. The common element used in these axiomatizations is a fairness property. It requires that if to a cooperative game we add another game in which two given players are symmetric, then their payoffs change by the same amount. In our analysis we will use an idea applied by R. van den Brink (2001) to obtain...

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