Linkage principle

The linkage principle is seen in the art market with the tradition of auctioneers hiring art experts to examine each lot and pre-commit to provide a truthful estimate of its value.

Version

v1 · 2026-09-28 · History

Domain-specific #

10433

Domain group

Social Sciences

Origin domain

Economics & Finance

Subdomains

Auction Theory, Mechanism Design → Economics & Finance

Core Idea

Linkage principle is treated here as the recurring socialscienceshumanitiesarts identity summarized by this source-grounded definition: The linkage principle is seen in the art market with the tradition of auctioneers hiring art experts to examine each lot and pre-commit to provide a truthful estimate of its value. The linkage principle is a finding of auction theory. It states that auction houses have an incentive to pre-commit to revealing all available information about each lot, positive or negative.

Scope of Application

• Formal derivation. In order to provide a statement of the linkage principle, we follow the presentation of Krishna, which notes that the linkage principle "was first set forth and used by Milgrom and.

• Formal derivation. More specifically, assume all signals are drawn from the interval and that for all we can write the value of bidder as.

• Use in FCC auction. Speaking of FCC spectrum auctions, Evan Kwerel said, "In the end, the FCC chose an ascending bid mechanism, largely because we believed that providing bidders with more information would likely increase.

• Use in FCC auction. The result alluded to by Kwerel is known as the linkage principle and was developed by Milgrom and Weber (1982).

• Use in FCC auction. Milgrom (2004) recasts the linkage principle as the 'publicity effect.' It provided a theoretical foundation for the intuition driving the major design choice by the FCC between an ascending bid and.

Clarity

A clear use of Linkage principle names the carrier, the operative relation, and the conditions under which the source treats the identity as present. The minimal definition is The linkage principle is seen in the art market with the tradition of auctioneers hiring art experts to examine each lot and pre-commit to provide a truthful estimate of its value.

Manages Complexity

Linkage principle compresses multiple socialscienceshumanitiesarts details into a stable diagnostic relation. The source shows both the central mechanism—the result alluded to by Kwerel is known as the linkage principle and was developed by Milgrom and Weber (1982).—and the practical consequence—indeed, according to McMillan (1994), the experts "judged [the negative collusion effect] to be outweighed by the bidders' ability to learn from others' bids in the open auction.".

Abstract Reasoning

1. Type the carrier. Identify the socialscienceshumanitiesarts entities to which the claim applies.
2. State the relation. Use the source-grounded identity: The linkage principle is seen in the art market with the tradition of auctioneers hiring art experts to examine each lot and pre-commit to provide a truthful estimate of its value.
3. Check operation and conditions. Milgrom (2004) recasts the linkage principle as the 'publicity effect.' It provided a theoretical foundation for the intuition driving the major design choice by the FCC between an ascending bid and.

Knowledge Transfer

Within the home domain. Knowledge about Linkage principle transfers literally when a new case preserves the same carrier type, relation, and recognition test. In order to provide a statement of the linkage principle, we follow the presentation of Krishna, which notes that the linkage principle "was first set forth and used by Milgrom and Weber (1982)." (Krishna, 2002, p. More specifically, assume all signals are drawn from the interval and that for all we can write the value of.

Neighborhood in Abstraction Space

Linkage principle sits in a sparse region of the domain-specific corpus (74^th percentile for distinctiveness): few abstractions share its structure, so a faithful description tends to retrieve it precisely.

Family — Unclustered & Miscellaneous (2551 abstractions)

Nearest neighbors

• Bayes Correlated Equilibrium — 0.85
• Prisoner's dilemma — 0.84
• Filling radius — 0.83
• Logico-linguistic modeling — 0.83
• Budget-Feasible Mechanism — 0.83

Computed from structural-signature embeddings · 2026-10-08