How having more bidders in oral auction will likely result

Reference no: EM133474395

Homework: Business Finance- Economics

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 homework examining the value of auctions in the economy by addressing the following items.

Question 1. Explain the difference between oral auctions and second-price auctions, including how they work and their results.

Question 2. Use the expected value information to illustrate how having more bidders in an oral auction will likely result in a higher winning bid.

Question 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.

Question 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.

Reference no: EM133474395

Questions Cloud

Specify the different parts of your chosen business document : Take a picture of any business document but limit your choice to the documents discussed. Copy and paste the picture on a MS word document

Provide a recommendation of a minimum of technology : Provide a recommendation of a minimum of technology general controls and three automated controls that you can provide to the IT Vice President

Describe the inefficiency uber exploited : Describe the inefficiency Uber exploited. Explain the incentive pay model Uber uses and how it affects the principal-agent problem.

Explain what is meant by a balanced scorecard : Explain what is meant by a Balanced Scorecard In doing so, explain in what sense it is 'balanced' and why this tool is said to provide a more sophisticated

How having more bidders in oral auction will likely result : Use the expected value information to illustrate how having more bidders in an oral auction will likely result in a higher winning bid.

How does the fiscal policy during the covid recession differ : How does the fiscal policy during the COVID-19 recession differ from normal recessions? Provide a minimum of 2 forms of difference.

How depreciation and accelerated depreciation can affect : What would your process be to ensure that all related financial details are allocated for and tracked so as to assist in making sound business decisions?

Criminal justice system : Within the criminal justice system and discuss the likely effects on those two agencies should the policy be implemented.

What are your thoughts on the effect of the trend : Select an economic trend from the Vistage report. What are your thoughts on the effect of this trend on the national economy?

User Account

All Pages