Auctions. Auction types: First price, sealed bid auction Second price, sealed bid auction English auction (ascending bid auction) Dutch auction (descending bid auction) Equivalence of: Second price, sealed bid and English auctions First price, sealed bid and Dutch auctions.
Second price, sealed bid and English auctions
First price, sealed bid and Dutch auctions
Contrast with independent private value objects:
-private value: personal tastes determine valuation
-independent: a bidder’s taste/valuation does not depend on others’
-Often by winning an auction of this type, you have overbid and will pay too much.
-You should bid as if you have the highest estimate of the object’s value
-must be well organized
-need to identify bidders
-need to awarded item to a ring member
-need to split up profits
-sealed bid auctions
-withhold information on auction result