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

Conclusion

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Albert Wibowo

Albert Wibowo

A full-time nerd

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