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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...
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