On Revenue Optimal Combinatorial Auctions - IFP Group at the ...
On Revenue Optimal Combinatorial Auctions - IFP Group at the ...
On Revenue Optimal Combinatorial Auctions - IFP Group at the ...
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<strong>Revenue</strong> vs Efficiency - Example 1<br />
The role of reserve prices:<br />
Buyer 1 Buyer 2<br />
1/3 2/3 1/3 2/3<br />
$1 $2 $1 $2<br />
Efficient auction<br />
Sell to <strong>the</strong> highest bidder <strong>at</strong> <strong>the</strong> second<br />
highest price.<br />
<strong>Revenue</strong> = 2*(2/3) 2 + 1 ‐ (2/3) 2 @ $1.45.<br />
MSW = 2*( 1 ‐ (1/3) 2 ) + (1/3) 2 @ $1.89.
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