Science Homework Help

Case Study: Auctions and Dynamic Pricing

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Overview

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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.

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The following video describes auctions as price discovery mechanisms:

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• The Ideal Auction.

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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.

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Instructions

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Address the following questions in 5–7 pages:

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• 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.