  This letter considers the design of an auction mechanism to sell the object
of a seller when the buyers quantize their private value estimates regarding
the object prior to communicating them to the seller. The designed auction
mechanism maximizes the utility of the seller (i.e., the auction is optimal),
prevents buyers from communicating falsified quantized bids (i.e., the auction
is incentive-compatible), and ensures that buyers will participate in the
auction (i.e., the auction is individually-rational). The letter also
investigates the design of the optimal quantization thresholds using which
buyers quantize their private value estimates. Numerical results provide
insights regarding the influence of the quantization thresholds on the auction
mechanism.
