The Macroeconomics Seminar:
Time: 12:15 pm – 13:30 pm
Date: 03th of January 2023

Zoom

Andrea Canidio (IMT school of advanced studies, Lucca, Italy)

Title : “Auctions with Tokens”

Abstract : “In a repeated, private-value auction, the auctioneer accepts payments in a blockchain-based token he creates and initially owns.  I show that the present-discounted value of the expected revenues is the same as in a standard auction with dollars, but these revenues accrue earlier and are less variable. I then introduce non-contractible effort and the possibility of misappropriating revenues. I compare the auction with tokens to an auction with dollars in which the auctioneer can also issue a financial security. An auction with tokens is preferred when there are sufficiently severe contracting frictions, while the opposite is true when contracting frictions are low.”

Organizers:
Julien PRAT (CREST)

Sponsors:
CREST