Introduction to Posted-Price Mechanisms
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چکیده
In the space of designs by which to auction off a single good, we have seen that there is a significant difference between a payment scheme that charges the second-highest bid, and one in which bidders pay their bids. In this lecture, we introduce a new payment and allocation scheme, called the posted-price mechanism, in which the auctioneer announces (i.e., posts) the price π at which they are selling the good,1 1 Sort of like how when we go out for coffee, we pay whatever price the establishment has decided on, irrespective of possible competition from other people. (Well, aside from the long lines.) after which any bidder that bids at least the posted price is uniformly eligible to win the good. The winner is then charged the posted price π, and all other bidders pay nothing. Given a posted price mechanism with price π, we can ask:
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