Bid Increments in Second-Price Sealed Bid Auctions
Richard Guy Cox
Abstract
Open-access reader
Richard Guy Cox
Abstract
Open-access reader
This note concerns bidding in a hybrid first-price and second-price auction. The winning bidder sometimes pays his bid and sometimes pays an amount determined by the next highest bid. In internet auctions where bidders wait until the end of the auction to bid the auction reduces to a sealed-bid auction and the bid function we derive may be relevant in such cases.
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This note concerns bidding in a hybrid first-price and second-price auction. The winning bidder sometimes pays his bid and sometimes pays an amount determined by the next highest bid. In internet auctions where bidders wait until the end of the auction to bid the auction reduces to a sealed-bid auction and the bid function we derive may be relevant in such cases.
Key concepts: Unique bid auction, Proxy bid, Bid shading, English auction, Vickrey auction, Common value auction, Generalized second-price auction, Bidding