Audios
Asymmetric information: auctions and the winner's curse [Game theory]
Autor
Polak, Ben
Resumen
Educação Superior::Ciências Sociais Aplicadas::Economia Educação Superior::Engenharias::Engenharia de Produção Presents part of course, Game theory , when Professor Polak discusses auctions. Makes a first distinguish two extremes: common values and private values. We hold a common value auction in class and discover the winner's curse, the winner tends to overpay. Discusses the four forms of auction: first-price sealed-bid, second-price sealed-bid, open ascending, and open descending auctions. Shows bidding strategies in each auction form for the case when values are private. Explores which auction forms generate higher revenues for the seller, but a proper analysis of this will have to await the next course