Myerson–Satterthwaite theorem

The Myerson–Satterthwaite theorem is a fundamental result in economic theory that addresses the conditions under which a buyer and a seller can achieve efficient outcomes in a market for an indivisible good when there is asymmetric information. The theorem is particularly relevant in the context of negotiations and auctions. Specifically, the Myerson–Satterthwaite theorem states that if a buyer and a seller have private information about their valuations for a good (i.e.