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: Paperback / softback
Length: 296 pages
Publication date: 26 May 2022
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 and breaking down questions into manageable 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) indicating the level of challenge. 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 those studying economics, finance, and business administration, as well as related courses such as game theory, market design, economics of information, contract theory, and microeconomics. Its practical and customizable approach makes it an essential tool for understanding auction dynamics and their applications in real-world situations.

Weight: 480g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030695774
Edition number: 1st ed. 2021