Question
In the two-buyer two-seller mechanism from lecture, trade results in a surplus. What if we eliminated the surplus by having the winning buyer and seller
In the two-buyer two-seller mechanism from lecture, trade results in a surplus. What if we eliminated the surplus by having the winning buyer and seller trade at the average of the other buyer and seller's reports? Would truth-telling still be a dominant strategy? Why or why not?
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Essentials of Economics
Authors: N. Gregory Mankiw
8th edition
1337091995, 978-1337515351, 1337515353, 978-1337091992
