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Different combination of goods and bidding rules could bring an outcome of significant difference.
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- Words:
- 1783
- Submitted:
- Fri Oct 10 2003
... EC201 Eassy 1 Anita Wong Group 26 When talking about auction, it's important to know that what are the nature of the good and the different bidding rules. Different combination of goods and bidding rules could bring an outcome of significant difference. There are two types. The first one is private- value auctions, this is when different people have different value on the same good in an auction. The bidders do not know the other bidders' valuation on the good, although they may have some rough idea. An example of it will be an art painting, it may worth a lot more to a paintings collectors then to a stamp collector. The other type is the common- value auctions, the worth of the item will be essentially the same to every bidder, but difference bidder may have difference estimate on the value of the item. An example will be an auction of
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