Search mechanisms (Q1098748)
From MaRDI portal
 | This is the item page for this Wikibase entity, intended for internal use and editing purposes. Please use this page instead for the normal view: Search mechanisms |
scientific article; zbMATH DE number 4037548
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Search mechanisms |
scientific article; zbMATH DE number 4037548 |
Statements
Search mechanisms (English)
0 references
1988
0 references
Extending the Revelation Principle to a case in which it is costly for the principal to communicate with any agent, we show that there is a sequential direct mechanism that is optimal in the class of all mechanisms. We then apply this result to the problem of a monopsonist seeking to buy an indivisible good from one of a set of possible sellers with unobservable production costs. With costly communication, the monopsonist's optimal procurement mechanism is a combination of reservation-price search and auction.
0 references
Revelation Principle
0 references
sequential direct mechanism
0 references
monopsonist
0 references
unobservable production costs
0 references
costly communication
0 references
optimal procurement mechanism
0 references
