Interdependent or common values agents unwilling to

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Interdependent or common values: agents unwilling to reveal their info until very last moment. Competitors may even forget(fail) to compete at the last seconds Procedural aspects. Naive agents find it natural to overbid only by a small amount rather to make a bid equal to their private value. More sophisticated agents may react to such naivety by sniping
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Bid shading Bid shading describes the practice of bidder placing a bid that is below what they believe a good is worth Reasons for bid shading: Concerns about interdependent values. Winning an auction w/interdependent values is a neg. Signal about the quality of the item, hence it is rational to bid less than your current evaluation of the item at the auction Concerns about the integrity of the auction. If ebay is rigged and will always produce a second highest bid close to the winning one, then it is rational to bid less than the private value. Bid shading is one reason why first-price auctions are becoming more popular in real time bidding (RTB). This is called the invasion of first-price auctions
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