Lecture 38 - Auctions

In this engaging video on Auctions: Introduction for our Operations and Revenue Analytics course, we explore the fascinating world of auctions and their practical applications in various markets. We will begin with an overview of how auctions function in practice, highlighting their significance in facilitating transactions. The video will cover the different Types of Auctions, including English, Dutch, sealed-bid, and more, providing insights into their unique characteristics and strategic implications. We’ll delve into Independent Private-Value Theory, which explains how bidders value items independently. Additionally, we will conduct an informal analysis of Sealed-Bid Auctions, comparing first-price and second-price formats. Finally, we’ll discuss Equilibrium Strategies for a Second-Price Auction, equipping you with the knowledge to navigate these competitive bidding environments effectively.