1. COS 444 Internet Auctions: Theory and Practice
Spring 2008
Ken Steiglitz
week 6 1a

2. Assignment 3: discussion
3.1 Techniques for average-of-other auction
3.2 Best response
3.3 How can we encourage (subsidize?) early entry?
week 6

3. Early bidding equiibrium?
Rasmusen 06: bidder 1 is uncertain of value, can pay cost c to discover; bidder 2 is certain of value
1 starts with low bid
2 bids early to signal if his value is high
1 pays to discover her value on signal
…Do you believe this?
week 6

4. Theory: Revenue equivalence II
We derive
Revenue in second-price auctions
Revenue in first-price auctions
week 6