Optimal Auctions for Asymmetrically Budget Constrained Bidders, mimeo

We consider an environment with a single divisible good and two bidders. The valuations of the bidders are private information but one bidder has a commonly known budget constraint. For this environ-ment we derive the revenue maximizing subsidy free incentive compat-ible auction. We also examine the case when the budget constraint is private information but bidders must post a bond