Skip to main content
About HEC About HEC Faculty & Research Faculty & Research Master’s programs Master’s programs MBA Programs MBA Programs PhD Program PhD Program Executive Education Executive Education Summer School Summer School HEC Online HEC Online About HEC Overview Overview Who
We Are Who
We Are
Egalité des chances Egalité des chances HEC Talents HEC Talents International International Campus
Life Campus
Life
Sustainability Sustainability Diversity
& Inclusion Diversity
& Inclusion
Stories Stories The HEC
Foundation The HEC
Foundation
Coronavirus Coronavirus
Faculty & Research Overview Overview Faculty Directory Faculty Directory Departments Departments Centers Centers Chairs Chairs Knowledge Knowledge Master’s programs Master in
Management Master in
Management
Master in
International Finance Master in
International Finance
Specialized
Masters Specialized
Masters
Ecole Polytechnique
-HEC programs Ecole Polytechnique
-HEC programs
Dual-Degree
programs Dual-Degree
programs
Visiting
students Visiting
students
Certificates Certificates Student
Life Student
Life
MBA Programs MBA MBA Executive MBA Executive MBA TRIUM EMBA TRIUM EMBA PhD Program Overview Overview HEC Difference HEC Difference Program details Program details Research areas Research areas HEC Community HEC Community Placement Placement Job Market Job Market Admissions Admissions Financing Financing Executive Education Executive Masters Executive Masters Executive Certificates Executive Certificates Executive short programs Executive short programs Online Online Companies Companies Executive MBA Executive MBA Infinity Pass Infinity Pass Summer School Youth Programs Youth Programs Summer programs Summer programs HEC Online Overview Overview Degree Program Degree Program Executive certificates Executive certificates MOOCs MOOCs Summer Programs Summer Programs
Faculty & Research

Subsidy Schemes in Double Auctions - Anthony Lee Zhang

17 Dec
2020
4:00 pm
Jouy-en-Josas
English

Participate

Add to Calendar
2020-12-17T16:00:00 2020-12-17T17:00:00 Subsidy Schemes in Double Auctions - Anthony Lee Zhang Finance Speaker : Anthony Lee Zhang (Chicago Booth)  Videoconference Jouy-en-Josas

Finance

Speaker : Anthony Lee Zhang (Chicago Booth) 

Videoconference

We study uniform-price double auctions augmented with a class of subsidy schemes. Using these subsidies, any profile of linear demand schedules can be implemented as an equilibrium outcome. By revenue equivalence, all other mechanisms which implement linear auction equilibria are essentially equivalent to some subsidy scheme in our class. We show that, under a linear dependency condition on primitives, fully efficient, budget balanced, and individually rational trade is possible. Thus, the welfare loss from equilibria in uniform-price auctions without subsidies is a non-fundamental distortion, which can be fixed with better mechanism design. However, we show that monopolist trading platforms have incentives to reduce allocative efficiency to increase revenue, even as the number of traders becomes large.

 

Click here to download the paper

Participate

Add to Calendar
2020-12-17T16:00:00 2020-12-17T17:00:00 Subsidy Schemes in Double Auctions - Anthony Lee Zhang Finance Speaker : Anthony Lee Zhang (Chicago Booth)  Videoconference Jouy-en-Josas