Review of Economic Design

, Volume 21, Issue 1, pp 1–31 | Cite as

Mechanisms for combinatorial auctions with budget constraints

  • Phuong Le
Original Paper


This paper studies combinatorial auctions with budget-constrained bidders from a mechanism design perspective. I search for mechanisms that are incentive compatible, individually rational, symmetric, non-wasteful and non-bossy. First focusing on the greedy domain, in which any increase in a bidder’s valuation always exceeds his budget, I derive the unique mechanism, called the Iterative Second Price Auction. For the general domain, however, no such mechanism exists.


Combinatorial auctions Budget constraints Mechanisms 

JEL Classification

D44 D82 



I want to thank Fuhito Kojima, Ilya Segal, Alex Wolitzky and Gabriel Carroll for their helpful comments on a version of this paper that was in my dissertation at Stanford University, and am grateful to two anonymous referees for their insightful comments.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2016

Authors and Affiliations

  1. 1.Stanford UniversityStanfordUSA

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