Second price auctions on general preference domains: two characterizations (Q946368)

The author considers auction theory. Auction theory usually assumes that bidders have quasi-linear preferences. In this article the existence and characterization of desirable auction rules for non-quasi-linear preference is investigated. It is shown that second price mechanisms (Vickrey mechanism) can be generalized by the use of the maximum willingness to pay, and the rules so generalized are still the only rules satisfying the sets of axioms characterizing second price mechanism.