There are many types of auctions, each with strengths and weaknesses at uncovering the real price or value of an item. Auctions are widely used in finance, e-commerce, and e-games. They are also widely used to generate revenue for not-for-profit organizations.
The following video describes auctions as price discovery mechanisms:
Use the video on auctions and at least three academic or high-quality business publications (see acceptable types below) to compare and contrast English auctions and Dutch auctions, and sealed-bid first-price auctions and Vickery auctions.
Address the following questions in 5–7 pages:
- Compare and contrast how each of the following uncovers value:
- English and Dutch auctions.
- Sealed-bid first-price auctions and Vickery auctions.
- Compare and contrast surge pricing and congestion pricing. Give an example of each currently in use.
- Identify three examples of auctions used in finance, e-commerce, and/or e-games. Explain the following in-depth:
- The need for an auction to uncover value in the product or service.
- How the type of auction used to uncover the value of the product or service is better at uncovering value than other types of auctions.
- What are the advantages or disadvantages of auctions as revenue generators for not-for-profit organizations?
- Suggest ways in which a for-profit company, such as the company for which you work or a company for which you aspire to work, can use auctions or dynamic pricing to better uncover value and increase revenue.