Practically Implementable Auction for an Object with Countervailing-Positive Externalities

This study theoretically presents a new auction design called "take-or-give auction." Unlike in basic auction, the take-or-give auction imposes new rules which the bidders compete for their desired allocation of the object. The auction solves the free-rider problem when applied to an object with countervailingpositive externalities. It is efficient. Moreover, by adding more rules including entry-fee rule, no sale condition and pooling rule, the extended take-or-give auction is the revenue-maximizing auction.