Open Research Index

Myerson's Optimal Auction Theorem

Arthur Freitas Ramos, David Barros Hulak, Ruy Jose Guerra Barretto de Queiroz

Palomar Registrypalomar/PALOMAR-2026-10-01-000012Oct 1, 2026cs.GTscore 0

A Lean formalization of Myerson's 1981 optimal auction theorem, regular case, in a single-parameter independent-private-values model with real types. Finitely many bidders draw independent types from TypeDist priors: probability measures on ℝ with a continuous monotone CDF and a nonnegative Lebesgue density that vanishes for negative types, so each prior's mass lies on [0, ∞). The formal results are MyersonOptimalAuction.Palomar.virtualSurplusIdentity: under BIC, the support hypothesis (hsupp : ∀ t : ℝ, 0 0 so zero is in the support), and five integrability hypotheses, the expected payment…

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