Questions tagged [auctions]

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

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6
votes
1answer
231 views

What types of 'market mechanisms' are said to exist besides auctions?

The book Understanding Auctions states: The term auction covers a wide range of market mechanisms that are used to exchange products and services by determining who receives an item and how much is ...
3
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4answers
749 views

Why are second price auctions preferred if they don't maximize expected revenue?

The reasoning usually given for why you would use a second price auction (SPA) as opposed to a first price auction (FPA) is that FPA encourage underbidding while SPA encourage truthful bidding. That ...
8
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2answers
310 views

How to auction shared item with a roommate?

My roommate and I split the cost of a game console a year ago (~$400) but he is now moving out. We were wondering how to fairly auction the console given the situation: We both paid an equal price ...
8
votes
4answers
2k views

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 ...
6
votes
2answers
55 views

Auction theory reference request

I am interested in finding the literature or at least some references (books, journal papers etc.) for the following problem: Suppose there is an auction with one seller and one buyer. The seller ...
5
votes
1answer
6k views

What are the advantages and disadvantages of second price auctions?

I am reading https://en.wikipedia.org/wiki/Vickrey_auction about second price auctions. It seems counterintuitive to me that the winning bidder pays the bidding price of the runner-up bidder, rather ...
4
votes
3answers
92 views

Auction with one buyer and multiple sellers

In the standard auction model, there are one seller and multiple buyers, the bidders are the buyers. Consider now an auction with one buyer and multiple sellers, where the bidders are the sellers. ...
3
votes
1answer
36 views

What's the definition of social welfare in a procurement auction?

In single item forward-auctions, the social welfare is defined as: $$\sum_{i=1}^{n} v_i x_i$$ where $v_i$ is buyer $i$'s valuation for the item, and $x_i$ is a binary variable indicating whether or ...
1
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2answers
301 views

Primary dealers in treasury auctions

When the treasury or equivalent institution of a country auctions of government bonds there is frequently (i.e. in most countries) some sort of restriction on who can participate. The term primary ...