Part2-LA3-Kevin-51805975

Part2-LA3-Kevin-51805975 - Vickrey auction. Vickrey auction...

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1. First of all, English auction means starting from a low price, bidding increases until no bidder is willing to bid higher. Also, English auction is an open-outcry, bids are publicly announced. If no bidder can use either automatic bidding or sniping software when bidding items on eBay, the auction-style format is equivalent to an English auction, because the bids are publicly announced, just like the meaning of an English auction, no systems help to prohibit from sharing information with each other, for example, the highest bidder and the bidding price can be seen by other bidders. And all bidders submit their bids publicly; the record can be seen by all bidders. Also, the ending of bidding is no bidder is willing to bid higher and pay more, so it is an English auction. 2. However, if all bidders always use automatic bidding and sniping software when bidding items on eBay, the auction-style format used eBay is almost equivalent to a
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Unformatted text preview: Vickrey auction. Vickrey auction means bidders submit their bids independently and they are prohibited from sharing information with each other, it is a sealed-bid. Also, the highest bidder pays the amount of the highest bid. The automatic bidding and sniping software are a sealed-bid, because this function prohibited from sharing information, the seller and other bidders dont know the maximum bid was set by me. Although the currently highest bidder and the bidding price can be seen by other bidders, the price is not the real highest bidding price, if your bidding price is higher than mine, the systems will increase my bidding price automatically according to my pervious setting. So, the seller and other bidders dont know my real highest bidding price. It is a sealed-bid and seems a Vickrey auction. So, automatic bidding and sniping software used on eBay is almost equivalent to a Vickrey auction....
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