Procedures in which participants submit bids, with resources being allocated among bidders in accordance with some pre-specified rule.

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How do penny auctions make money?

What are penny auctions? Given the great discounts they claim (up to 95%), how do they make money?
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Arguing uniqueness of Bayes-Nash equilibrium in an auction setting

In an auction setting with interdependent values, let $\theta_i$ denote the type of player $i$ and $m_i$ that player's message (a bid, essentially). I have calculated the best response function as: ...
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How to calculate expected revenue in reverse auctions (procurement)

I'm trying to find the correct formula to calculate de expected revenue of a reverse auction, properly, a second-price sealed-bid procurement auction to identify the lowest cost supplier. Prices are ...
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First-price auction with discrete values

Exercise 4.5 in Vijay Krishna's Auction Theory: Suppose that bidder 1 always has value $X_1=2$, while bidder 2's value, $X_2$ is equally likely to be $0$ or $2$. Find equilibrium bidding ...
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Two-player first-price auction with resale

Exercise 2.5 in Vijay Krishna's Auction Theory (slightly modified): Consider a two-bidder first-price auction in which bidders’ values are distributed according to $F$. Let $\beta$ be the ...
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Are lotteries auctions?

I heard one professor of my university say that "lottery is a kind of auction. So we can predict it! Then we could get a lot of money!" Since he is in the mathematics department, and I know little ...
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System of Differential Equations- Asymmetric First-Price Auction

I am working on a problem in my Auction Theory textbook regarding a two-player asymmetric first price auction. Assume the bidders are risk neutral. The problem statement is as follows: ...
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Can't Derive Expectation in Second Price Auction

I'm working on a SPA where we solve: $\max_{\beta \ge 0} Pr\{Winning\}[v - \mathbb{E}(b^{[2]} \ | \ b^{[2]} \le \beta)]$ We assume all beliefs on bids are independently and identically distributed ...
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“Auction” versus “Bidding war”

Real estate sales sometimes occur at an official auction. But sometimes a seller who does not take their house to auction may find themselves entertaining multiple bids for the house. In this case, ...
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Can repeated bidding in an auction make each player's type common knowledge?

In Benjamin Edelman, Michael Ostrovsky, and Michael Schwarz(2007), there's a hand-waving argument to justify their setting as a game of complete information: we assume that all values are common ...
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Is there an algorithm to find as many NE as possible in this generalized second price auction?

Suppose three advertisers, I, II, III are participating in an auction for three positions for online advertising, top, middle and bottom. Assume that click per second for a position is not affected ...
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Impact of auction systems that allow 'sniping'

I'm a bit perplexed that eBay has auctions that have a fixed time ending, and so winners are often determined by who can 'snipe' the auction, by putting in the winning bid at the last possible ...
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eBay economics - total revenue impact from expanding ecosystem by 1 seller

While I think my question is straight forward, I'm guessing the answer to it is anything but. Thanks in advance for any insight you may be able to offer, even if it's just a directional assist. ...
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Bidder Count Impact on Uniform Price Economics

Say we have an uniform price auction where 1 really rare stamp is for sale. Only 5 randomly selected stamp collectors are invited to bid and the stamp ends up selling for 1 million dollars. Now ...
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What are the benefits of a first price sealed bid auction?

All parties make a single bid. But do not disclose the bid to peers. The organizer chooses the maximum (or minimum) bid as the winner. What are benefits of such a system as opposed to normal auction ...
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Fantasy football

I have an idea for a fantasy football experiment looking at three different areas of the draft. These three areas are the position of each pick and how often and what value are trades. I have dug ...
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Reverse auction formula

I am studing a little bit of auction theory. I found the optimal bid value in the Milgrom paper for the first price auction that is $$ P=v \frac{n-1}{n} $$ where $P$ is the optimal bid, $v$ is the ...
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Intuition behind the linkage principle

An important result in auction theory is Milgrom & Weber's linkage principle, which, roughly, holds that the expected revenue from an auction is higher is the seller commits ex ante to reveal as ...