Summary

The details of the auction design could make or break the Treasury's plan to invest $700 billion in mortgage-related securities to resolve the financial crisis, using market mechanisms such as reverse auctions to determine prices, according to Lawrence M. Ausubel and Peter Cramton.

Recommended Citation

Ausubel, Lawrence M. and Cramton, Peter (2008) "Auction Design Critical for Rescue Plan," The Economists' Voice: Vol. 5 : Iss. 5, Article 5.
DOI: 10.2202/1553-3832.1415
Available at: http://www.bepress.com/ev/vol5/iss5/art5

Readers' Reactions

Hal R. Varian, Letter: How to Drink the Sub-Prime Kool-Aid (September 2008)