Crémer, Jacques; Spiegel, Yossi; Zheng, Charles Zhoucheng

Economics Letters Vol. 93 no. 1 (October 2006): 94-100.

We study optimal auctions when contacting prospective bidders is costly and the
biddersﾒ values are correlated. Although full surplus extraction is in general impossible, we can construct a search mechanism that fully extracts the surplus with an arbitrarily high probability.