Auction Equilibrium CBD

Auction Equilibrium CBD - EQUILIBRIUM BIDDING STRATEGIES...

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Winner's Curse Winner's Blessing 19 13.53 24.9 6.3 Company 1 Number of Companies Standard Deviation of Errors All Other Companies This file simulates 10,000 auctions in which all companies, other than C each bid their signals minus the amount that you enter in Cell E39 . The simula data points for Company 1's Expected Value of Adjustment . These are simula eleven possible amounts that Company 1 could subtract from its signal. 1. Enter any desired adjustment for all other companies in Cell E39 . 2. Click on the Optimize button that is located in Cell F38 . This runs th Optimize . Clicking on the Adjust button, located in Cell F 39 . Running Adjust wil values from the former simulation . Rerunning the macro, Optimize , will reco values from a new simulation . The macros display the optimum Company 1 adjustment, amax , matchin specified adjustment for all other companies. Company 1's expected value for adjustment by amax is also displayed. An equilibrium occurs when amax is eq adjustment for all other companies. When approximating an equilibrium adjustment, it is best to enter a new
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Auction Equilibrium CBD - EQUILIBRIUM BIDDING STRATEGIES...

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