An auction can have any two of the three following properties: static, strategy proof, or credible. Which two the designer chooses also characterizes the kind of auction (first price, second price, and ascending).
Here, Mohammad Akbarpour (Stanford Graduate School of Business) focuses on the incentive compatibility for the auctioneer – ensuring that auctioneers do not find it profitable to cheat (where cheating is defined as behavior that can be made to look “legal” to each participant by misrepresenting the preferences of the other participants). Mohammad examines the optimal auctions in which only winners pay, under symmetric independent private values. The first-price auction is the unique credible static mechanism. The ascending auction is the unique credible strategy-proof mechanism.
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