2
votes
1answer
85 views

Generalized Mechanism Design, Stanley Reiter diagram and Vickrey Auction

I am trying to learn this new topic, Mechanism Design and stumbled upon the "Stanley Reiter" diagram (see the top-right side on the page). I have also learned that the Second Price Sealed Bid ...
1
vote
1answer
62 views

What is the relative strength of each of the players in this game?

This is a real life problem. A group of people meet once a week to play a game between two teams. Each round 2 people are randomly appointed captains. Each captain takes turns picking people to be on ...
6
votes
1answer
183 views

Sunk cost auction modeling.

Consider the following auction concept. I call it a "SUNK COST AUCTION" Each person bids, but you pay all of the money that you bid for every bid you make. So, if you bid \$1 that \$1 is gone, even if ...
2
votes
2answers
549 views

How to calculate perceived value?

Is there a known formula to calculate perceived value? If I am auctioning some popular product that is worth $100 (shelf price), how much would people bid if they: Have a 1 in ...