Win by mechanism design
https://gyazo.com/567c5ad1cc4dea977843c096cbe7b0b4
Business applications of micro-economics that win through [mechanism design It was vertically written, a book that looked like a transcript of a talking book.
Sellers have no idea what's going on in the buyer's head.
= [information asymmetry
That's where we gather information at the auction.
Auction, image mixed
Bid up, bid down
sealed type
First price, second price
second price
strategicity
What are the benefits to the seller?
I don't know in general.
The second price system has only been taught in economics departments for the last 20 years.
Relationship between bidding and second price
Match in standard model
Effects of Heat-Up
Humans are emotionally capable of bidding more than their pre-assessed value.
Wanting to win, resistance to not getting it
About 10-15% of experimental subjects heat up.
The author's impression is that it's not just people who are emotionally heated up, but also people who lack knowledge or strongly believe in something else and calmly choose to act in a damaging way.
Heat-up does not occur in the sealed type.
update
Update your own evaluation by looking at others' evaluations
I don't want them to say, "I don't want to pay for it" after the auction results.
Good if executed automatically -> Smart Contracts
Auction operator fishes
shill bidding
If it's first price, the bidder pays his bid, no problem.
With a second price, a price-fixing attack could be established by the operator looking at the winning bid of a potential bidder and bidding slightly below that amount.
Auction of coins issued
Issuance of financial instruments
Primary and secondary markets
Primary market is auction oriented, because the appropriate price is unknown.
IPOs are primary but not auctioned.
Equity secondary market auctions
Whoever gets the highest price can buy it.
No auctioning off fish at the supermarket.
Low unit price
No day-to-day = significant disadvantages of taking longer to trade.
government bonds
Primary Market: JGB Auction by MOF Finance Bureau
Secondary market: BOJ is buying.
Multiple Homogeneous Goods Auction
Bid Payment Method
Same as the first price method when a single good
[Contrast with uniform pricing, also called discriminatory pricing.
Uniform price method, runner-up price method
Cheapest winning bid OR most expensive losing bid
Not strategically resistant.
Honesty gains with strategy resistance = lower decision-making costs for bidders.
Vickrey method
Pay the maximum on losing bids other than your own.
Bidding by English clock
Prices go up, each person wants less.
End at the point where the sum of demand is less than supply.
Experimental results prone to higher prices
Example of financier
Auction design to avoid unsold items
Bid the amount you want to pay.
The amount of money collected on the clock goes down.
Ends with a match.
Real Estate Auction Examples
10-minute rule
Ends 10 minutes after the last bid.
To avoid being inundated with deadlines
Real estate auctions were lifted in 1999.
Bidding down auction of unsold items from post-bubble cleanup
Bidding down is viable with only one buyer, but bidding up is at the lowest price.
This is due to the fact that the buyer is not informed that "the buyer is alone".
Auctions are easy to get [understanding
Price accountability
Transparency in the decision-making process contributes to conviction.
Simultaneous Bidding Auction
I want to combine different goods for sale.
Selling two houses, want one but don't need two.
Frequency Auction
Individual Auctions
Keep accepting bids until everything stops.
sequential auction
unfavorable
stable matching
Gale-Shapley algorithm
Meet the strategic resistance: Honesty pays off!
Difficult to rank when the number of people increases
You'll have to rank them by their grades.
Dormitory room exchange
Top Trading Cycle Algorithm
Pareto improvement
Application to renal transplantation
The ability to rate well leads to ease of application of matching theory.
voting
Quadratic Voting
Can reflect strength of preference
A certain amount of credits are distributed.
There are multiple themes for the ballot.
Distribute credits on a theme.
You get 10 votes for 100 credits.
Will be used in Colorado.
Why or how it's good hasn't been proven.
majority judgment
Ordinary majority rule is vulnerable to vote splitting.
MJ will solve this problem.
For example, rate each candidate on a 7-point scale
The median value is the candidate's social rating
A two-step process is called an endorsement vote.
MJ positioned as an improved version of the endorsement vote
2011
Until this came out, majority rule with a deciding vote and the Boulder Rule were being discussed.
Why choose the median?
Strong strategic operation
It's proven (what exactly?).
More information than choosing one.
Candidate Correlations
A few ardent fans/weakly supported by many.
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