Unveiling Auction Theory

Image taken from Google

Introduction to Auction Theory

  1. How can we maximise the revenues of the sellers/auctioneers?
  2. How can we ensure the items fall into the hands of buyers/bidders that value them the most?

The types of the products

  • Products with Independent Private Values (IPV)
  • Products with Common Values (CV)

The types of the auctions

  • English Auction
  • Dutch Auction
  • First-Price Sealed Bid Auction
  • Second-Price Sealed Bid Auction

Mechanism Design

  • The bidders are risk-neutral
  • The bidders have independent private values
  • The bidders are symmetric


A full-time nerd

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

What Big O notation tells you about the algorithm?

The power of beauty

Stop Teaching Math Before High School

Deriving the Normal Equation for Ordinary Least Squares.

Craps 6 8 Progression


Tale of Statistics

An Integrals Crash Course for Data Science

Important questions on Piaget Kohlberg and Vygotsky’s theory

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Albert Wibowo

Albert Wibowo

A full-time nerd

More from Medium

An engineer’s manifesto

Rolls-Royce to build Small Modular Reactors in UK— Market Mad House

Work Disincentives Hit the Near-Poor Hardest. Better Cash Assistance Could Help.

America Isn’t That Bad. Or Good.