# Questions tagged [auction-theory]

For questions about auction theory, an applied branch of economics which deals with how people act in auction markets and researches the properties of auction markets.

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### Weak dominance in second-price auction

Consider a sealed-bid second price auction with two bidders. Standard textbooks claim that bidding one's true valuation $v_i$ weakly dominates bidding lower than one's valuation $b_i<v_i$. But I am ...
• 609
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### Determining bid price based on probability distribution

I’m doing a Game Theory Project but unsure how to continue with the mathematics. My idea was bid pricing strategies in sealed first-price reverse auctions e.g. government contracts, raw material ...
92 views

### What is the expected payoff in an asymmetric first sealed bid price auction with uniform distributions?

A has an IID uniform distribution in [0,6] for item X. B has an IID uniform distribution in [2,4] for item X. There is an auction X, highest bidder wins and pays what they bid. The player's payoff is ...
• 323
1 vote
41 views

### Truthful budget partitioning

Suppose there is a budget $M$ that needs to be partitioned into two projects $A$ and $B$. There are two players, where the first player prefers to allocate $pM$ to A and $(1-p)M$ to $B$ (i.e., it ...
• 23
1 vote
27 views

### Conditional density of the second highest order statistics

Notation: $Y_1$: Highest order statistics of $(N-1)$ players' valuation. $F_n^M:$ The distribution function of the highest $n$th order statistics of $M$ players. $f_n^M:$ The density of the highest $n$...
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### Bidding Theory and Probability of getting highest value in list after ignoring first half of list

You are offering an item for sale and there are n bidders. The bidders appear in sequence. When bidder i appears he or she makes a bid bi > 0. You must decide immediately whether to accept the bid ...
97 views

### Expected revenue in an auction

Consider an auction in which two independent buyers bid for an antique object. If each of them draws their valuations from $\mathcal{U}[0,1]$ and the auction lets the highest bidder take the object by ...
• 158
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### Single Price Auction [closed]

I am self-studying the following question: there is a bag with unknown value (can be negative). Everyone bids a price and whoever bids the highest wins the bag. Design the optimal strategy. This is a ...
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