Publication: Auctions: A New Method for Selling Objects with Bimodal Density Functions
Loading...
Official URL
Full text at PDC
Publication Date
2022-04-03
Authors
Espínola Vílchez, Rosario
Advisors (or tutors)
Editors
Journal Title
Journal ISSN
Volume Title
Publisher
Springer Nature
Citations
Exportar
Abstract
In this paper we define a new auction, called the Draw auction. It is based on the implementation of a draw when a minimum price of sale is not reached. We find that a Bayesian Nash equilibrium is reached in the Draw auction when each player bids his true personal valuation of the object. Furthermore, we show that the expected profit for the seller in the Draw auction is greater than in second-price auctions, with or without minimum price of sale. We make this affirmation for objects whose valuation can be modeled as a bimodal density function in which the first mode is much greater than the second one. Regarding the Myerson auction, we show that the expected profit for the seller in the Draw auction is nearly as good as the expected profit in the optimal auction, with the difference that our method is much more simple to implement than Myerson’s one. All these results are shown by computational tests, for whose development we have defined an algorithm to calculate Myerson auction.
Description
CRUE-CSIC (Acuerdos Transformativos 2022)