# Proposer Incentive Compatibility of Private Bidding in PBS

**URL:** https://collective.flashbots.net/t/proposer-incentive-compatibility-of-private-bidding-in-pbs/2032
**Category:** Research
**Tags:** open-problem, economics, pbs
**Created:** [July 20, 2023, 10:02pm UTC](https://collective.flashbots.net/t/proposer-incentive-compatibility-of-private-bidding-in-pbs/2032 "2023-07-20T22:02:10Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![Quintus](https://collective.flashbots.net/letter_avatar_proxy/v4/letter/q/49beb7/32.png) [@Quintus](https://collective.flashbots.net/u/Quintus)
#### Post date: [July 20, 2023, 10:02pm UTC](https://collective.flashbots.net/t/proposer-incentive-compatibility-of-private-bidding-in-pbs/2032/1 "2023-07-20T22:02:10Z")

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Are sealed-bid first price auction incentive compatible for the auctioneer? Specifically, the auctioneer may choose to expose information about bids to any subset of bidders in order to attempt to solicit higher bids. The answer is probably no, but is there a kind of mechanism/setting in which we do have incentive compatibility? What kind of limitations on the auctioneers action space can help us, assuming we have the cryptographic protocol to achieve such limitations?

The specific context for this is PBS on Ethereum which is outlined more cleanly [here](https://collective.flashbots.net/t/private-bidding-in-pbs-cryptography/2031).