Auction Theory: Introductory Exercises with Answer Keys

This textbook provides a short introduction to auction theory through exercises with detailed answer keys, emphasizing game-theoretic tools and practical examples. It covers second-price auctions, first-price auctions, all-pay auctions, third-price auctions, the Revenue Equivalence principle, common-value auctions, multi-unit auctions, and procurement auctions. Exercises are ranked according to difficulty, and instructors can use the suggested exercises for each chapter.

Format: Hardback
Length: 296 pages
Publication date: 25 May 2021
Publisher: Springer Nature Switzerland AG

This comprehensive textbook offers a thorough introduction to auction theory, encompassing a range of topics through engaging exercises with detailed answer keys. Focusing on practical applications, it presents over 80 exercises designed to predict bidder equilibrium behavior in various auction formats, along with the strategic incentives for sellers to choose one format over another. The book emphasizes game-theoretic tools, enabling students to apply these principles to other auction scenarios. Additionally, several exercises are based on published articles, simplifying complex models into manageable components and dividing questions into easy-to-answer parts. With a minimal mathematical background in algebra and calculus, the text is suitable for upper undergraduate and graduate students. It begins with a discussion of second-price auctions, which can be studied without advanced mathematical techniques, and progresses to more complex auction scenarios such as first-price auctions, all-pay auctions, third-price auctions, the Revenue Equivalence principle, common-value auctions, multi-unit auctions, and procurement auctions. Each chapter includes exercises ranked in difficulty, with a letter (A-C) assigned to the exercise title, allowing students to tailor their studies accordingly. Furthermore, the authors provide a list of suggested exercises for each chapter, catering to instructors teaching at different levels, including undergraduate, Masters, and Ph.D. students.

This textbook serves as an invaluable resource for students studying economics, finance, and business administration, as well as related classes like game theory, market design, economics of information, contract theory, and microeconomics. Its practical and customizable approach equips students with the knowledge and skills necessary to understand and analyze auction dynamics, which are crucial in today's competitive markets. By offering a comprehensive coverage of auction theory, this textbook provides a solid foundation for future professionals seeking to excel in the field.

Weight: 635g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030695743
Edition number: 1st ed. 2021