Efficient Allocation with Informational Externalities
June 05, 2018, 11:30 - 13:00
We consider a seller of an item who faces potential buyers whose valuations depend on multiple private signals. It is known from the literature that when there are informational externalities and buyers' private signals arrive all at once efficiency is unattainable. We show that if the buyers' private signals arrive over time then the seller can attain efficiency even in the presence of informational externalities.
Economics building (504), faculty lounge on the first floor