SEARCH

SEARCH BY CITATION

Keywords:

  • Reduced-form auctions;
  • network-flow approach;
  • feasible circulation flow;
  • paramodular capacity constraints

We develop a network-flow approach for characterizing interim-allocation rules that can be implemented by ex post allocations. Our method can be used to characterize feasible interim allocations in general multi-unit auctions where agents face capacity constraints, both ceilings and floors. Applications include a variety of settings of practical interest, ranging from individual and group-specific capacity constraints, set-aside sale, partnership dissolution, and government license reallocation.