Skip to main content

Currently Skimming:

Appendix E: Auction Types
Pages 130-131

The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.

From page 130...
... Increasingly, however, such auctions are being held electronically; • The descending bid, or Dutch auction, in which the price is lowered until someone agrees to the price; • The first price, sealed-bid auction, in which the buyers put in secret sealed bids and the highest bidder wins the good at the bid price; and • The second price, sealed-bid auction, or Vickery auction, in which buyers put in sealed bids and the highest bidder wins the good at the second highest bid price. An early theoretical result from auction theory is that under risk neutrality, independent values, free entry, and competitive bidding, the four mechanisms yield identical expected revenue and each bidder should bid his or her estimate of the true value for the object.
From page 131...
... Since it is easier to collude in a second price, sealed-bid auction, a firstprice, sealed-bid auction is the best choice for helium sales. Such sales, however, would require open access to the Cliffside reserves or to swaps, and this access would require monitoring by BLM or some other regulatory body.

This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More information on Chapter Skim is available.