Auctions.md

The selling of an item based on bids and valuation. All players compete with each other using their bids.

Types of auctions

Based on valuation

• Private value: Each bidder has their own valuation of the item that is sold. This is the [[Incomplete information game|private information]] that is determinrd by nature (dummy player).
• Common value: Valuation of the object is the same for all the players.

Based on types of bids

• Sealed bids: Simultaneous and private bids by each player ([[Normal form games|simultaneous]] [[game]])
• Public outcry: The value of bids are made public and the value of bids keeep increasing untill no one else bids.