Using Auctions to Inject Bank Capital

A proposal by University of Maryland econ profs Lawrence M. Ausubel and Peter Cramton. (Here is their earlier piece on using auctions to buy troubled assets.)

Trivia fact: Larry and I are old friends. We are both from the Princeton class of 1980, along with Danny Quah (now econ prof at LSE), Jim Rauch (now econ prof at UCSD), and David Romer (now econ prof at UC Berkeley). A bumper crop, if I say so myself.