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Always Run an Auction

4 点作者 jackaltman5 个月前

1 comment

lpage5 个月前
As an auction theorist who&#x27;s biased towards putting things in auctions and as an operator who&#x27;s been through the venture investment process several times, I&#x27;m biased in wanting a more efficient capital formation process with less adverse selection (better outcomes) for both sides. So, I&#x27;m doubly biased, but I appreciate why this hasn&#x27;t been done and that it <i>could</i> be done.<p>Classical auctions aren&#x27;t a good fit because they can&#x27;t handle non-price factors. However, a combinatorial clock auction could handle non-price factors while also improving price discovery. But as Milgrom says (paraphrased), the best auction is the one people use, so the more realistic outcome is what OP describes: running your own (implicit) auction.
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