北大微观经济学课件(英文版)Ch17Auctions-PPT（精）-(精品课件).pptVIP

中级微观经济学 Chapter Seventeen Auctions Who Uses Auctions? Owners of art, cars, stamps, machines, mineral rights etc. Q: Why auction? Who Uses Auctions? Owners of art, cars, stamps, machines, mineral rights etc. Q: Why auction? A: Because many markets are imperfect and it is hard to discover potential buyers’ true valuations of your asset. Auctions help to discover this information. Types of Auctions English auction: bids are public announcements bid price rises until there are no further bids highest bid wins winner pays his bid. Types of Auctions Sealed-bid first-price auction: bids are private information bids are made simultaneously highest bid wins winner pays his bid. Types of Auctions Sealed-bid second-price auction: bids are private information bids are made simultaneously highest bidder wins winner pays second-highest bid also known as a Vickrey auction. Types of Auctions Dutch auction: auctioneer announces a high bid and then gradually lowers the bid first buyer to accept wins and pays that price. Reserve Price A seller specified bid level below which no sale is made. Economists’ Classification of Auctions Private-value auctions: every potential buyer knows for sure her own valuation of the item for sale all these individual valuations are independent of each other. Economists’ Classification of Auctions Common-value auctions: item for sale has the same value to every potential buyer potential buyers differ in their own estimates of this common value. Auction Design Goals: Pareto efficiency maximization of the seller’s profit. Auction Design Pareto efficiency: the item must sell to the buyer with the highest valuation of the item. Which auctions are Pareto efficient? Auctions and Efficiency English auction with no reserve price must be efficient since, if a buyer with a low valuation was about to buy, the highest valuation buyer would bid higher. Auctions and Efficiency English auction with a reserve price need not be efficient since if the reserve pri