Decision Sciences
3 years ago

Bidders Beware: First-Price Auctions Favor Highest Bidder, Leaving Others Empty-Handed

2 views
Springer texts in business and economics
First-Price Auctions
Pak-Sing Choi, Félix Muñoz-García

Paper Summary

The article discusses first-price auctions, where bidders privately submit their bids for an object. The seller then picks the highest bidder to pay their bid and receive the object, while all other bidders pay nothing and do not get the object.

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