Robust trading mechanisms (Q1087124)
From MaRDI portal
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Robust trading mechanisms |
scientific article |
Statements
Robust trading mechanisms (English)
0 references
1987
0 references
We consider the problem of designing a trading institution for a single buyer and seller when their valuation of the good is private information. It is shown that posted-price mechanisms are essentially the only mechanisms such that each trader has a dominant strategy. A posted-price mechanism is one where a price is posted in advance and trade occurs if and only if all traders agree to trade.
0 references
trading institution
0 references
single buyer and seller
0 references
private information
0 references
posted-price mechanisms
0 references
dominant strategy
0 references