Valuation of the bidding object, Other Subject

Problem: As in class there is some set N of bidders in an auction of one object, which the seller of the object can deliver at 0 cost. Suppose each bidder is valuation of the object is given by some parameter vi ≥ 0 which is only known to bidder i.

1. Suppose the auction format is the first price auction, where bidders simultaneously write their bids, submit them, and the winning bidder (the one with the highest bid) pays her bid. Would bidders want to bid their valuations, below their valuations, or above their valuations?

2. Suppose now that the auction proceeds as follows: initially some low price is announced, say p0 = 0, and it keeps being increased continuously through time, e.g., at time t, p (t) = t. At each moment, all biders who still want to remain in the auction keep their hands raised; at the moment a bidder wants to drop out she lowers her hand (and she can't raise it again). The object is awarded to the last bidder with the raised hand. At what price would a bidder want to lower her hand?

Posted Date: 3/23/2013 3:02:10 AM | Location : United States







Related Discussions:- Valuation of the bidding object, Assignment Help, Ask Question on Valuation of the bidding object, Get Answer, Expert's Help, Valuation of the bidding object Discussions

Write discussion on Valuation of the bidding object
Your posts are moderated
Related Questions
how to design a website for a college or university?


Effects of Population Growth : The effects of population growth are varied and vast. Whereas population growth, of any species, might be beneficial to a certain extent, there might

Gender Discrimination: Discrimination based on gender leads to inequality and harassment in the workplace, schools, in the justice system and in other areas of society. Discrimina

Sociological Theories of Religion: Each main sociological framework has its perspective on religion. For example, from the functionalist perspective of sociological theory, religi

Question 1 What do you mean by barriers of communication? Explain different types of barriers to communication Question 2 Explain the different types of listening Questio

Hello I''m a student from Denmark. I write pretty good assignments but my gramma isn''t so good allways. Could I send a whoule taks to you on say 1-3 pages, and would you make the

write a 450-500 words of what makes a sucessful city


REVIEW THE FOLLOWING TOPICS FOR THE UNIT TEST #3 ROI - guidelines for release, consents, etc... Numbering systems Microfiche/microfilm storage Filing – what is more efficient & wha