Auction

An Auction is a multi-agent game that involves purchase bids (by auction buyers) and a valuable resource (by auction sellers).

• Context:
  • It can typically involve Price Discovery through auction competitive bidding.
  • It can typically establish Market Value for auction item through auction buyer competition.
  • It can typically facilitate Resource Allocation to auction buyers with highest auction valuation.
  • It can typically generate Revenue Maximization for auction seller through auction competitive pressure.
  • It can typically require Bidding Strategy development by auction participants.
  • It can typically provide Market Transparency through auction public price revelation.
  • ...
  • It can often incorporate Reserve Price to ensure auction minimum revenue.
  • It can often include Bidder Registration to verify auction participant qualification.
  • It can often feature Time Constraint through auction bidding deadline.
  • It can often utilize Auction Rule to govern auction participant behavior.
  • It can often involve Information Asymmetry about auction item quality.
  • It can often create Competitive Tension among auction buyers.
  • ...
  • It can range from being an Ascending Price Auction to being a Descending Price Auction, depending on its auction price movement.
  • It can range from being an Open-Bid Auction to being a Sealed-Bid Auction, depending on its auction bid visibility.
  • It can range from being a First-Price Auction to being a Second-Price Auction, depending on its auction payment rule.
  • It can range from being a Single-Item Auction to being a Multi-Item Auction, depending on its auction lot structure.
  • It can range from being a Single-Round Auction to being a Multi-Round Auction, depending on its auction iteration pattern.
  • It can range from being a Private-Value Auction to being a Common-Value Auction, depending on its auction valuation model.
  • It can range from being a Physical Auction to being a Digital Auction, depending on its auction execution medium.
  • ...
  • It can be created by an Auctioning Task to enable auction resource distribution.
  • It can be managed by an Auctioneer to enforce auction procedural integrity.
  • It can facilitate Market Efficiency through auction optimal allocation.
  • It can reveal Participant Valuation through auction bidding behavior.
  • It can prevent Price Collusion through auction competitive framework.
  • ...
• Examples:
  • Traditional Auctions, such as:
    • Fine Art Auctions involving auction rare paintings and auction sculptures.
    • Real Estate Auctions for auction property sale and auction land distribution.
    • Livestock Auctions featuring auction animal trading.
    • Estate Sale Auctions for auction personal property liquidation.
  • Government Auctions, such as:
    • Treasury Bill Auctions for auction government debt.
    • Spectrum License Auctions for auction frequency allocation.
    • Mineral Rights Auctions for auction extraction permission.
    • Seized Property Auctions for auction confiscated asset.
  • Digital Auctions, such as:
    • Online Marketplace Auctions like eBay for auction consumer good.
    • Online Ad Impression Auctions for auction digital advertising placement.
    • Online Cab Request Auctions for auction ride matching.
    • Virtual Item Auctions for auction digital asset.
  • Specialized Format Auctions, such as:
    • Dutch Flower Auctions using auction descending price clock.
    • Japanese Auctions with auction rising price and auction participant withdrawal.
    • Silent Auctions for auction charity fundraising.
    • Combinatorial Auctions for auction package bidding.
  • Commercial Auctions, such as:
    • Wholesale Auctions for auction bulk merchandise.
    • Industrial Equipment Auctions for auction machinery sale.
    • Bankruptcy Auctions for auction business asset liquidation.
    • Intellectual Property Auctions for auction patent and auction trademark.
  • ...
• Counter-Examples:
  • Fixed-Price Transactions, such as retail sale or catalog purchase, which lack auction competitive bidding and auction price discovery.
  • Negotiated Transactions, where price determination occurs through direct bargaining rather than auction competitive process.
  • Private Economic Transactions between specific buyer and seller without auction multiple bidder competition.
  • Political Elections, which involve vote rather than bid and select candidates rather than allocate auction resource.
  • Lottery Systems, which distribute resources based on random selection rather than auction highest bid.
  • Command Allocations, where resource distribution occurs through administrative decision rather than auction market mechanism.
• See: Trade, Economic Resource, Economic Theory, Private Value, Common Value, Market Making, Mechanism Design, Price Discovery, Game Theory, Auction Theory.

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References

2014

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Auction Retrieved:2014-4-19.
  • An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.

2009

• (Krishna, 2009) ⇒ Vijay Krishna. (2009). “Auction Theory, 2nd edition.” Academic Press. ISBN:0123745071

2002

• (Krishna, 2002) ⇒ Vijay Krishna. (2002). “Auction Theory.” Academic Press. ISBN:012426297X

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