arXiv subjects

Teemu Pekkarinen

Publications and source records attributed to Teemu Pekkarinen.

2 recordsLinked to original sources

arXiv2026

Optimal Auction Design with Contingent Payments and Costly Verification

We study the design of an auction for an income-generating asset such as an intellectual property license. Each bidder has a signal about his future income from acquiring the asset. After the asset is allocated, the winner's income from the asset is realized privately. The principal can audit the winner, at a cost, and then charge a payment contingent on the winner's realized income. We solve for an auction that maximizes the principal's revenue, net of auditing costs. The winning bidder is charged linear royalties up to a cap, beyond which there is no auditing. A higher bidder pays more in cash upfront and faces a lower royalty cap.

econ.TH↗

arXiv2024

On Regularity and Normalization in Sequential Screening

We comment on the regularity assumptions in the multi-agent sequential screening model of Eso and Szentes (2007). First, we observe that the regularity assumptions are not invariant to relabeling each agent's signal realizations. Second, we show that the regularity assumptions rule out valuation distributions with common bounded support. Third, we show that if each signal realization is labeled to equal the expected valuation, then the regularity assumptions imply that each agent's valuation is equal to his signal realization plus independent mean-zero noise.

econ.TH↗