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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

Sociology

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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. 

The following video describes auctions as price discovery mechanisms:

• The Ideal Auction.

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.

Instructions

Address the following questions in 5–7 pages:

1. Compare and contrast how each of the following uncovers value:
   • English and Dutch auctions.
   • Sealed-bid first-price auctions and Vickery auctions.
2. Compare and contrast surge pricing and congestion pricing. Give an example of each currently in use.
3. 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.
4. What are the advantages or disadvantages of auctions as revenue generators for not-for-profit organizations?
5. 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.