Bilateral trading with contingent contracts

Kiho Yoon

doi:10.1007/s00182-019-00699-9

Bilateral trading with contingent contracts

Kiho Yoon

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

We study the bilateral trading problem under private information. We characterize the range of possible mechanisms which satisfy ex-post efficiency, incentive compatibility, individual rationality, and budget balance. In particular, we show that the famous Myerson–Satterthwaite impossibility result no longer holds when contingent contracts are allowed.

Original language	English
Pages (from-to)	445-461
Number of pages	17
Journal	International Journal of Game Theory
Volume	49
Issue number	2
DOIs	https://doi.org/10.1007/s00182-019-00699-9
Publication status	Published - 2020 Jun 1

Bibliographical note

Funding Information:
I thank the referees and an associate editor for invaluable comments and suggestions.

Publisher Copyright:
© 2019, Springer-Verlag GmbH Germany, part of Springer Nature.

Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.

Keywords

Bilateral trading
Contingent contracts
Ex-post efficiency
Linear contracts
Royalty contracts

ASJC Scopus subject areas

Statistics and Probability
Mathematics (miscellaneous)
Social Sciences (miscellaneous)
Economics and Econometrics
Statistics, Probability and Uncertainty

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10.1007/s00182-019-00699-9

Cite this

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KW - Linear contracts

KW - Royalty contracts

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Bilateral trading with contingent contracts

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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