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Auctions can be an important tool for selling goods and gathering information. Auctions are used in multiple venues including agriculture, eBay, and distressed asset sales. The seller does not have to worry about estimating demand and setting a price because the demanders will do that through the auction process.
Write an essay examining the value of auctions in the economy by addressing the following items.
1. Explain the difference between oral auctions and second-price auctions, including how they work and their results.
2. Use the expected value information to illustrate how having more bidders in an oral auction will likely result in a higher winning bid.
3. Explain how the number of bidders in a common value auction affects the outcome of the auction. Relate this to the effect on price in different market structures based on the number of producers.
4. Auctions lead to outcomes where buyers reveal their value for the products being auctioned. To successfully price discriminate, firms often rely on buyers revealing their value for products. Explain the conditions necessary for firms to be able to price discriminate.
Differentiate between how humans will manage water resources (fresh water and ocean) in the sustainable future compared to how it is done now.
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Normal 0 false false false EN-US X-NONE X-NONE Organizational Change and Pers..
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