Auctions and Bidding: A Primer

@article{Milgrom1989AuctionsAB,
  title={Auctions and Bidding: A Primer},
  author={Paul R. Milgrom},
  journal={Journal of Economic Perspectives},
  year={1989},
  volume={3},
  pages={3-22}
}
  • P. Milgrom
  • Published 1 August 1989
  • Economics
  • Journal of Economic Perspectives
Maybe the contractor was right to think bid jobs are different, but it is more likely that he suffered from too simple a view of what is involved in preparing a competitive bid. Our analysis will show that even an experienced estimator working in familiar terrain can lose money if he doesn't understand the subtleties of competitive bidding. The phenomenon experienced by the painting contractor, known as the " Winner's Curse," is just one of the surprising and puzzling conclusions that have been… 
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References

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Auctions with endogenous quantity
This article studies auctions in which several sellers compete for the right to sell to a market characterized by a negatively sloped demand curve. In this environment the quantity traded becomes
Auctions and Bidding
ONE PARTY TO AN EXCHANGE often knows something relevant to the transaction that the other party does not know. Such asymmetries of information are pervasive in economic activity: for example, in the
Information, Returns, and Bidding Behavior in OCS Auctions: 1954-1969
This paper examines federal auctions for leases on the Outer Continental Shelf in the light of the predictions of the first-price, sealed-bid, common-values model of auctions. The authors find that
A Competitive-Bidding Strategy
A method is presented that determines optimum bids in a competitive-bidding situation where each competitor submits one closed bid. The number of bidders may be large or may be unknown. This method
Collusive Bidder Behavior at Single-Object Second-Price and English Auctions
Models of collusive bidder behavior at single-object second-price and English auctions are provided. The ind ependent private values model is generalized to permit the formulatio n of coalitions and
An Empirical Study of an Auction with Asymmetric Information
This paper examines federal auctions for drain age leases on the Outer Continental Shelf from 1959 to 1969. These are leases that are adjacent to tracts on which a deposit has been discovered. The
Competitive Bidding with Asymmetric Information
This paper analyzes the problem of competitive bidding (via sealed tenders) under uncertainty when one of the parties knows the value of the prize with certainty. A real problem of this type has been
A theory of auctions and competitive bidding
Abstract : In Section 2, we review some important results of the received auction theory, introduce a new general auction model, and summarize the results of our analysis. Section 3 contains a formal
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