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The Economics of Auctions

Auctions: Recap

A recap of how auctions work and why design matters.

This lesson reviews the module.

Formats

English, Dutch, first-price and second-price.

Behaviour

Truthful bidding, the winner’s curse and collusion.

Applications

Spectrum, coal, ads and procurement.

Lesson

Design shapes revenue, fairness and efficiency.

Spotting an auction

Notice how ads, tenders and marketplaces set prices by competition.

Ignoring the rules of the game

Formats change outcomes.

Key takeaways
  • Formats differ.
  • Bidders behave strategically.
  • Auctions allocate public assets.
  • Design matters.
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