Efficient bilateral trade via two-stage mechanisms: Comparison between one-sided and two-sided asymmetric information environments

• Main Authors: KUNIMOTO, Takashi, ZHANG, Cuiling
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2022
• Subjects: Bilateral trades; Asymmetric information; Two-stage mechanisms; Econometrics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2660
• Institution: Singapore Management University

This paper first considers a bilateral-trade model with one-sided asymmetric information in which one agent (seller) initially owns an indivisible object and is fully informed of its value, while the other agent (buyer) intends to obtain the object whose value is unknown to himself. As no mechanisms...