[PDF] Bidding For Contract Games Applying Game Theory To Analyze First Price Sealed Bid Auctions eBook

Author : András I. Kucsma
Publisher :
Page : 121 pages
File Size : 28,48 MB
Release : 1997-06-01
Category :
ISBN : 9781423572169

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This study analyzed the first price sealed bid auction (FPSBA) using computer simulations. The first price sealed bid auction is a static Bayesian game with incomplete information. These games have a well defined symmetric Bayesian Nash equilibrium. The existence of the equilibrium makes it possible to find the bidders' equilibrium strategies. The equilibrium strategy maximizes the bidders' profit. This thesis assumes, (1) the bidders act rationally and have private information about their production cost, (2) the bidders' preferences and information are symmetric, (3) the buyer is committed not to deviate from the auction rules, even if a deviation would be profitable. Considering these assumptions and the equilibrium strategy, this Thesis constructed a FPSBA model. The model was transformed into an algorithm and coded in Visual Basic language. The code was used to simulate the FPSBA in different scenarios. The simulation showed the bidders' behavior and identified factors affecting the bidders' decision during bid preparation. Critical factors include the cost distribution and number of bidders. The concluding chapter presents the analytical results.

Author : Paul Milgrom
Publisher : Cambridge University Press
Page : 378 pages
File Size : 30,8 MB
Release : 2004-01-12
Category : Business & Economics
ISBN : 1139449168

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This book provides a comprehensive introduction to modern auction theory and its important new applications. It is written by a leading economic theorist whose suggestions guided the creation of the new spectrum auction designs. Aimed at graduate students and professionals in economics, the book gives the most up-to-date treatments of both traditional theories of 'optimal auctions' and newer theories of multi-unit auctions and package auctions, and shows by example how these theories are used. The analysis explores the limitations of prominent older designs, such as the Vickrey auction design, and evaluates the practical responses to those limitations. It explores the tension between the traditional theory of auctions with a fixed set of bidders, in which the seller seeks to squeeze as much revenue as possible from the fixed set, and the theory of auctions with endogenous entry, in which bidder profits must be respected to encourage participation.

Author : Pak-Sing Choi
Publisher : Springer Nature
Page : 304 pages
File Size : 37,4 MB
Release : 2021-05-24
Category : Business & Economics
ISBN : 3030695751

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This textbook provides a short introduction to auction theory through exercises with detailed answer keys. Focusing on practical examples, this textbook offers over 80 exercises that predict bidders’ equilibrium behaviour in different auction formats, along with the seller’s strategic incentives to organize one auction format over the other. The book emphasizes game-theoretic tools, so students can apply similar tools to other auction formats. Also included are several exercises based on published articles, with the model reduced to its main elements and the question divided into several easy-to-answer parts. Little mathematical background in algebra and calculus is assumed, and most algebraic steps and simplifications are provided, making the text ideal for upper undergraduate and graduate students. The book begins with a discussion of second-price auctions, which can be studied without using calculus, and works through progressively more complicated auction scenarios: first-price auctions, all-pay auctions, third-price auctions, the Revenue Equivalence principle, common-value auctions, multi-unit auctions, and procurement auctions. Exercises in each chapter are ranked according to their difficulty, with a letter (A-C) next to the exercise title, which allows students to pace their studies accordingly. The authors also offer a list of suggested exercises for each chapter, for instructors teaching at varying levels: undergraduate, Masters, Ph.D. Providing a practical, customizable approach to auction theory, this textbook is appropriate for students of economics, finance, and business administration. This book may also be used for related classes such as game theory, market design, economics of information, contract theory, or topics in microeconomics.

Author : David J. Salant
Publisher : MIT Press
Page : 199 pages
File Size : 11,42 MB
Release : 2014-12-19
Category : Business & Economics
ISBN : 0262028263

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A guide to modeling and analyzing auctions, with the applications of game theory and auction theory to real-world auction decision making. Auctions are highly structured market transactions primarily used in thin markets (markets with few participants and infrequent transactions). In auctions, unlike most other markets, offers and counteroffers are typically made within a structure defined by a set of rigid and comprehensive rules. Because auctions are essentially complex negotiations that occur within a fully defined and rigid set of rules, they can be analyzed by game theoretic models more accurately and completely than can most other types of market transactions. This book offers a guide for modeling, analyzing, and predicting the outcomes of auctions, focusing on the application of game theory and auction theory to real-world auction design and decision making. After a brief introduction to fundamental concepts from game theory, the book explains some of the more significant results from the auction theory literature, including the revenue (or payoff) equivalence theorem, the winner's curse, and optimal auction design. Chapters on auction practice follow, addressing collusion, competition, information disclosure, and other basic principles of auction management, with some discussion of auction experiments and simulations. Finally, the book covers auction experience, with most of the discussion centered on energy and telecommunications auctions, which have become the proving ground for many new auction designs. A clear and concise introduction to auctions, auction design, and auction strategy, this Primer will be an essential resource for students, researchers, and practitioners.

Author : Dragan Cvetković
Publisher : BoD – Books on Demand
Page : 234 pages
File Size : 25,14 MB
Release : 2018-02-14
Category : Computers
ISBN : 9535138030

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The book "Simulation and Gaming" discusses the following topics and research areas: game-based methods of problem solution and data processing, analysis, and information mining; educational games and game features, including game characteristics, story, mechanics, and methodology; development of integrated games tasked with helping students in interpreting, translating, and manipulating the field of kinematics through formal presentations; possibility of research integration through real and practical examples and games as well, in the field of physics; analysis of game engines from various aspects such as modularity, performance, and usability; virtual reality (VR) and interaction mechanisms used for three-dimensional (3D) game development; analysis, development, design, implementation, and evaluation of the simulation model in the field of engineering and metallurgy, according to ADDIE model; concept of computational thinking, with an accent on its inclusion in compulsory education; overview of the current prominence of AI simulation based in the gaming leisure industry, mainly for research purposes in the context of gambling and forecasting of online casino patron's churn behavior; innovative modeling and simulation approach using newly proposed advanced game-based mathematical framework, unified game-based acquisition framework, and a set of war-gaming engines to address the challenges for acquisition of future space systems; modification of simulation of a complex system and a physics model through programming, achieved with a block-based programming language.

Author : Paul Robert Milgrom
Publisher : Cambridge University Press
Page : 396 pages
File Size : 15,26 MB
Release : 2004-01-12
Category : Business & Economics
ISBN : 9780521536721

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Table of contents

Author : Suat Tozendemir
Publisher :
Page : 304 pages
File Size : 34,37 MB
Release : 1997-12-01
Category :
ISBN : 9781423563204

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This thesis analyzes the First Price Sealed Bidding (FPSB) procurement method using computer simulations. The First Price Sealed Bidding is a static Bayesian Game with incomplete information. These games have a well defined Bayesian Nash equilibrium. Using this theory, this study found the bidders' equilibrium strategies. The equilibrium strategy is the strategy that maximizes bidders' profit simultaneously. Some assumptions have been made to be able to construct a model for the FPSB. Then, the model was transformed into computer simulation code using Visual Basic programming language. Two different simulation programs used to experiment with several scenarios under uniform and triangular production cost distributions. The simulation showed the bidders' behavior and identified factors affecting the bidders' decision while preparing their bids. The most influential factors found to be production cost distributions and number of bidders. Concluding observations concerning both buyers and bidders present the results derived from the analysis of experiments.

Author : Gregor Berz
Publisher : Springer
Page : 202 pages
File Size : 46,68 MB
Release : 2016-04-30
Category : Business & Economics
ISBN : 1137475420

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This text bridges the gulf between theoretical economic principles of negotiation and auction theory and their multifaceted applications in actual practice. It is intended to be a supplement to the already existing literature, as a comprehensive collection of reports detailing experiences and results of very different negotiations and auctions.

Author : David J. Salant
Publisher : MIT Press
Page : 199 pages
File Size : 37,41 MB
Release : 2014-12-26
Category : Business & Economics
ISBN : 0262321831

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A guide to modeling and analyzing auctions, with the applications of game theory and auction theory to real-world auction decision making. Auctions are highly structured market transactions primarily used in thin markets (markets with few participants and infrequent transactions). In auctions, unlike most other markets, offers and counteroffers are typically made within a structure defined by a set of rigid and comprehensive rules. Because auctions are essentially complex negotiations that occur within a fully defined and rigid set of rules, they can be analyzed by game theoretic models more accurately and completely than can most other types of market transactions. This book offers a guide for modeling, analyzing, and predicting the outcomes of auctions, focusing on the application of game theory and auction theory to real-world auction design and decision making. After a brief introduction to fundamental concepts from game theory, the book explains some of the more significant results from the auction theory literature, including the revenue (or payoff) equivalence theorem, the winner's curse, and optimal auction design. Chapters on auction practice follow, addressing collusion, competition, information disclosure, and other basic principles of auction management, with some discussion of auction experiments and simulations. Finally, the book covers auction experience, with most of the discussion centered on energy and telecommunications auctions, which have become the proving ground for many new auction designs. A clear and concise introduction to auctions, auction design, and auction strategy, this Primer will be an essential resource for students, researchers, and practitioners.

Author : David Easley
Publisher : Cambridge University Press
Page : 745 pages
File Size : 22,71 MB
Release : 2010-07-19
Category : Computers
ISBN : 1139490303

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Are all film stars linked to Kevin Bacon? Why do the stock markets rise and fall sharply on the strength of a vague rumour? How does gossip spread so quickly? Are we all related through six degrees of separation? There is a growing awareness of the complex networks that pervade modern society. We see them in the rapid growth of the internet, the ease of global communication, the swift spread of news and information, and in the way epidemics and financial crises develop with startling speed and intensity. This introductory book on the new science of networks takes an interdisciplinary approach, using economics, sociology, computing, information science and applied mathematics to address fundamental questions about the links that connect us, and the ways that our decisions can have consequences for others.