Equilibrium transformations and the Revenue Equivalence Theorem

Abstract

I develop a method that transforms an equilibrium strategy profile from one auction to another. The method is constructive and does not require complicated computation. This provides a new approach to revenue equivalence and extends the theorem to domains where it had not previously been known, in particular to simultaneous multiple object auctions with complete information and to auction environments having correlated private values and common values. © 2003 Elsevier Inc. All rights reserved.