ECON 1101 Lecture Notes - Open Outcry, Reservation Price, United States Treasury Security
Document Summary
Auctions: an important form of market exchange that matches suppliers with consumers. Treasury bills: auctioned/sold when the government spends more money than they have in tax money. Cell phone spectra: fcc auctions to right to use the cellular airways. Single-sided: either the supplier or the consumer are bidding, but not traditional auctions (ebay, etc), only the consumer is bidding bids for construction companies, only the supplier is bidding. Double-sided: both the supplier and the consumer are bidding: single vs double-sided auctions both electricity auctions stock trading, sealed-bid vs open outcry. Sealed-bid: price is written, other bidders don"t see it. Open outcry: price is known to all parties. Bids: w1 = 60 w2 = 60 w3 = 60. If bidder i gets sale, has profit of (p(i) - w(i)) Experiment 1: single-sided, sellers submit bids, sealed bid, pay as bid: a buyer needs a book, auction outcome: Experiment 2: adding some competition, bidders know each others" costs.
