Comparison of Four Basic Types of Auctions
DOI:
https://doi.org/10.54097/ehss.v2i.786Keywords:
Auction, First-Price sealed-bid auction, Second-Price sealed-bid auction, Ascending-bid auction, Descending-bid auction, optimal strategy, characteristics, application.Abstract
Auction is a good way for people to exchange their goods and services and is essential to our daily life. Auctions can be classified into various genres and kinds depending on their unique rules. In this essay, I focused mainly on the four basic kinds of auctions: First-Price sealed-bid auction, Second-Price sealed-bid auction, Ascending-bid auction and descending-bid auction. I also tried to use several simple models to find out the characteristics and optimal strategies for each of the auction. Having their own advantages and weakness, different auctions should be used depending on specific situations to further maximize the efficiency of the auctions.
Downloads
References
Birulin, Oleksii, and Sergei Izmalkov. "On efficiency of the English auction." Journal of Economic Theory 146.4 (2011): 1398-1417.
Coppinger, Vicki M., Vernon L. Smith, and Jon A. Titus. "incentives and behavior in english, dutch and sealed‐bid auctions." Economic inquiry 18.1 (1980): 1-22.
Elyakime, Bernard, et al. "First-price sealed-bid auctions with secret reservation prices." Annales d'Economie et de Statistique (1994): 115-141.
Gul, Faruk, and Ennio Stacchetti. "The English auction with differentiated commodities." Journal of Economic theory 92.1 (2000): 66-95.
Klemperer, Paul (July 1999). "Auction Theory: A Guide to the Literature" (PDF). Journal of Economic Surveys. 13 (3): 227–286. doi:10.1111/1467-6419.00083.
Klemperer, Paul. "Auction theory: A guide to the literature." Journal of economic surveys 13.3 (1999): 227-286.
Menezes, Flavio M., and Paulo K. Monteiro. An introduction to auction theory. OUP Oxford, 2004.
Milgrom, Paul, and Paul Robert Milgrom. Putting auction theory to work. Cambridge University Press, 2004.
Rockoff, Todd E., and Michael Groves. "Design of an Internet‐based system for remote Dutch auctions." Internet Research (1995).
Walker, James M., Vernon L. Smith, and James C. Cox. "Bidding behavior in first price sealed bid auctions: use of computerized Nash competitors." Economics Letters 23.3 (1987): 239-244.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
How to Cite
