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Second-price Sealed-bid Auction
A Vickrey auction or sealed-bid second-price auction (SBSPA) is a type of sealed-bid auction. Bidders submit written bids without knowing the bid of the other people in the auction. The highest bidder wins but the price paid is the second-highest bid. This type of auction is strategically similar to an English auction and gives bidders an incentive to bid their true value. The auction was first described academically by Columbia University professor William Vickrey in 1961 though it had been used by stamp collectors since 1893. In 1797 Johann Wolfgang von Goethe sold a manuscript using a sealed-bid, second-price auction. Vickrey's original paper mainly considered auctions where only a single, indivisible good is being sold. The terms ''Vickrey auction'' and ''second-price sealed-bid auction'' are, in this case only, equivalent and used interchangeably. In the case of multiple identical goods, the bidders submit inverse demand curves and pay the opportunity cost. Vickrey auc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Auction
An auction is usually a process of buying and selling goods or services by offering them up for bids, taking bids, and then selling the item to the highest bidder or buying the item from the lowest bidder. Some exceptions to this definition exist and are described in the section about different types. The branch of economic theory dealing with auction types and participants' behavior in auctions is called auction theory. The open ascending price auction is arguably the most common form of auction and has been used throughout history. Participants bid openly against one another, with each subsequent bid being higher than the previous bid. An auctioneer may announce prices, while bidders submit bids vocally or electronically. Auctions are applied for trade in diverse contexts. These contexts include antiques, paintings, rare collectibles, expensive wines, commodities, livestock, radio spectrum, used cars, real estate, online advertising, vacation packages, emission trading, a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monotonic
In mathematics, a monotonic function (or monotone function) is a function between ordered sets that preserves or reverses the given order. This concept first arose in calculus, and was later generalized to the more abstract setting of order theory. In calculus and analysis In calculus, a function f defined on a subset of the real numbers with real values is called ''monotonic'' if and only if it is either entirely non-increasing, or entirely non-decreasing. That is, as per Fig. 1, a function that increases monotonically does not exclusively have to increase, it simply must not decrease. A function is called ''monotonically increasing'' (also ''increasing'' or ''non-decreasing'') if for all x and y such that x \leq y one has f\!\left(x\right) \leq f\!\left(y\right), so f preserves the order (see Figure 1). Likewise, a function is called ''monotonically decreasing'' (also ''decreasing'' or ''non-increasing'') if, whenever x \leq y, then f\!\left(x\right) \geq f\!\left(y\ri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Auction Theory
Auction theory is an applied branch of economics which deals with how bidders act in auction markets and researches how the features of auction markets Incentivisation, incentivise predictable outcomes. Auction theory is a tool used to inform the design of real-world auctions. Sellers use auction theory to raise higher revenues while allowing buyers to procure at a lower cost. The conference of the price between the buyer and seller is an economic equilibrium. Auction theorists design rules for auctions to address issues which can lead to market failure. The design of these rulesets encourages optimal bidding strategies among a variety of informational settings. The 2020 Nobel Prize for Economics was awarded to Paul R. Milgrom and Robert B. Wilson “for improvements to auction theory and inventions of new Auction#Types, auction formats.” Introduction Auctions facilitate transactions by enforcing a specific set of rules regarding the resource allocations of a group of bidders. T ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Revelation Principle
The revelation principle is a fundamental principle in mechanism design. It states that if a social choice function can be implemented by an arbitrary mechanism (i.e. if that mechanism has an equilibrium outcome that corresponds to the outcome of the social choice function), then the same function can be implemented by an incentive-compatible-direct-mechanism (i.e. in which players truthfully report type) with the same equilibrium outcome (payoffs). In mechanism design, the revelation principle is of utmost importance in finding solutions. The researcher need only look at the set of equilibria characterized by incentive compatibility. That is, if the mechanism designer wants to implement some outcome or property, they can restrict their search to mechanisms in which agents are willing to reveal their private information to the mechanism designer that has that outcome or property. If no such direct and truthful mechanism exists, no mechanism can implement this outcome/property by ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Mechanism Design
Mechanism design is a field in economics and game theory that takes an objectives-first approach to designing economic mechanisms or incentives, toward desired objectives, in strategic settings, where players act rationally. Because it starts at the end of the game, then goes backwards, it is also called reverse game theory. It has broad applications, from economics and politics in such fields as market design, auction theory and social choice theory to networked-systems (internet interdomain routing, sponsored search auctions). Mechanism design studies solution concepts for a class of private-information games. Leonid Hurwicz explains that 'in a design problem, the goal function is the main "given", while the mechanism is the unknown. Therefore, the design problem is the "inverse" of traditional economic theory, which is typically devoted to the analysis of the performance of a given mechanism.' So, two distinguishing features of these games are: * that a game "designer" choos ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bayesian-optimal Mechanism Design
A Bayesian-optimal mechanism (BOM) is a mechanism in which the designer does not know the valuations of the agents for whom the mechanism is designed, but the designer knows that they are random variables and knows the probability distribution of these variables. A typical application is a seller who wants to sell some items to potential buyers. The seller wants to price the items in a way that will maximize their profit. The optimal prices depend on the amount that each buyer is willing to pay for each item. The seller does not know these amounts, but assumes that they are drawn from a certain known probability distribution. The phrase "Bayesian optimal mechanism design" has the following meaning: * Bayesian means that we know the probability distribution from which the agents' valuations are drawn (in contrast to prior-free mechanism design, which do not assume any prior probability distribution). * Optimal means that we want to maximize the expected revenue of the auctioneer, wher ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reservation Price
In economics, a reservation (or reserve) price is a limit on the price of a good or a service. On the demand side, it is the highest price that a buyer is willing to pay; on the supply side, it is the lowest price a seller is willing to accept for a good or service. Reservation prices are commonly used in auctions, but the concept is extended beyond. A party's best alternative to a negotiated agreement (BATNA) is closely related to their reservation price. Once a party determines their BATNA, they can then calculate their reservation price. In negotiations surrounding the price of a particular good or service, the reservation price is a singular number. However, this is not the only situation in which reservation prices are seen. When multiple issues are being discussed, such as the size of salary and amount of benefits when applying for a new job position, the reservation price would be represented as a package where multiple requirements need to be met. Description In mi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Uniform Price Auction
A multiunit auction is an auction in which several homogeneous items are sold. The units can be sold each at the same price (a uniform price auction) or at different prices (a discriminatory price auction). Uniform price auction A uniform price auction otherwise known as a "clearing price auction", pay-as-clear or marginal price auction, "marginal price system" (MPS), is a multiunit auction in which a fixed number of identical units of a homogenous commodity are sold for the same price. Each bidder in the auction may submit (possibly multiple) bids, designating both the number of units desired and the price he/she is willing to pay per unit. Typically these bids are sealed - not revealed to the other buyers until the auction closes. The auctioneer then serves the highest bidder first, giving them the number of units requested, then the second-highest bidder and so forth until the supply of the commodity is exhausted. All bidders then pay a per unit price equal to the lowest winn ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Erdős–Rényi Model
In the mathematical field of graph theory, the Erdős–Rényi model is either of two closely related models for generating random graphs or the evolution of a random network. They are named after Hungarian mathematicians Paul Erdős and Alfréd Rényi, who first introduced one of the models in 1959, while Edgar Gilbert introduced the other model contemporaneously and independently of Erdős and Rényi. In the model of Erdős and Rényi, all graphs on a fixed vertex set with a fixed number of edges are equally likely; in the model introduced by Gilbert, also called the Erdős–Rényi–Gilbert model, each edge has a fixed probability of being present or absent, independently of the other edges. These models can be used in the probabilistic method to prove the existence of graphs satisfying various properties, or to provide a rigorous definition of what it means for a property to hold for almost all graphs. Definition There are two closely related variants of the Erdős–R ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Multicast
In computer networking, multicast is group communication where data transmission is addressed to a group of destination computers simultaneously. Multicast can be one-to-many or many-to-many distribution. Multicast should not be confused with physical layer point-to-multipoint communication. Group communication may either be application layer multicast or network-assisted multicast, where the latter makes it possible for the source to efficiently send to the group in a single transmission. Copies are automatically created in other network elements, such as routers, switches and cellular network base stations, but only to network segments that currently contain members of the group. Network assisted multicast may be implemented at the data link layer using one-to-many addressing and switching such as Ethernet multicast addressing, Asynchronous Transfer Mode (ATM), point-to-multipoint virtual circuits (P2MP) or InfiniBand multicast. Network-assisted multicast may also be impl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Unicast
Unicast is data transmission from a single sender (red) to a single receiver (green). Other devices on the network (yellow) do not participate in the communication. In computer networking, unicast is a one-to-one transmission from one point in the network to another point; that is, one sender and one receiver, each identified by a network address. Unicast is in contrast to multicast and broadcast which are one-to-many transmissions. Internet Protocol unicast delivery methods such as Transmission Control Protocol (TCP) and User Datagram Protocol (UDP) are typically used. See also * Anycast * Broadcast, unknown-unicast and multicast traffic * IP address * IP multicast * Routing Routing is the process of selecting a path for traffic in a network or between or across multiple networks. Broadly, routing is performed in many types of networks, including circuit-switched networks, such as the public switched telephone netw ... References External links * * Internet archit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Strategyproof
In game theory, an asymmetric game where players have private information is said to be strategy-proof or strategyproof (SP) if it is a weakly-dominant strategy for every player to reveal his/her private information, i.e. given no information about what the others do, you fare best or at least not worse by being truthful. SP is also called truthful or dominant-strategy-incentive-compatible (DSIC), to distinguish it from other kinds of incentive compatibility. An SP game is not always immune to collusion, but its robust variants are; with group strategyproofness no group of people can collude to misreport their preferences in a way that makes every member better off, and with strong group strategyproofness no group of people can collude to misreport their preferences in a way that makes at least one member of the group better off without making any of the remaining members worse off. Examples Typical examples of SP mechanisms are majority voting between two alternatives, second- ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
