A result of an equivalence theorem for these entities shows that the expected revenue is the same for the first-price and second-price versions when private values are independently and identically distributed.
In 1999, Perry and Reny showed than when multiple units are considered for these entities, a result established in 1982 by Milgrom and Weber was not necessarily true. Their "linking" principle demonstrates that under incomplete information and affiliated signals, a result regarding these entities that was verified by Riley and Samuelson no longer holds. A result of an equivalence theorem for these entities shows that the expected revenue is the same for the first-price and second-price versions when private values are independently and identically distributed. Examples of open ones include the Dutch type, which differs from the more common English type of these entities by constantly lowering its price. The phenomenon by which the winner of these entities tends to overpay is known as the winner's curse. For 10 points, name this allocation mechanism in which goods are exchanged through bids.
In 1999, Perry and Reny showed than when multiple units are considered for these entities, a result established in 1982 by Milgrom and Weber was not necessarily true.
auctions