An Introduction to Auction Theory

Auction theory is now an important component of an economist''s training. The techniques and insights gained from the study of auction theory provide a useful starting point for those who want to venture into the economics of information mechanism design and regulatory economics.This book provides a step-by-step self-contained treatment of the theory of auctions. It allows students and readers with a calculus background to work through all the basic results covering the basic independent-private-model; the effects of introducing correlation in valuations on equilibrium behaviour and the seller''s expected revenue; mechanism design; and the theory of multi-object auctions.