Competing Auctions in Intermediated Markets (opens in new tab)  🌐Web3  Content type: Academic

We analyze competing auctions in intermediated markets, where a seller selects among parallel mechanisms for the sale of a single good, most prominently the relay-and-protocol architecture of proposer-builder separation in Ethereum. When the intermediary can enforce single-homing on its bidders, sealed-bid second-price intermediary auctions fully unravel into the sealed first-price principal auction; open bidding-format intermediaries unravel only partially, collapsing into first-price in equ...