A Measure of the Variability of Revenue in Auctions: A Look at the Revenue Equivalence Theorem

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dc.contributor.author Beltran, Hector en
dc.contributor.author Santamaria, N en
dc.date.accessioned 2015-03-08T23:47:37Z en
dc.date.issued 2006 en
dc.identifier.citation Journal of Applied Mathematics and Decision Sciences, 2006, 2006 Article number 27417, 14 pages en
dc.identifier.issn 1173-9126 en
dc.identifier.uri http://hdl.handle.net/2292/24790 en
dc.description.abstract One not-so-intuitive result in auction theory is the revenue equivalence theorem, which states that as long as an auction complies with some conditions, it will on average generate the same revenue to an auctioneer as the revenue generated by any other auction that complies with them. Surprisingly, the conditions are not defined on the payment rules to the bidders but on the fact that the bidders do not bid below a reserve value—set by the auctioneer—the winner is the one with the highest bidding and there is a common equilibrium bidding function used by all bidders. In this paper, we verify such result using extensive simulation of a broad range of auctions and focus on the variability or fluctuations of the results around the average. Such fluctuations are observed and measured in two dimensions for each type of auction: as the number of auctions grows and as the number of bidders increases. en
dc.relation.ispartofseries Journal of Applied Mathematics and Decision Sciences en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. Details obtained from http://www.hindawi.com/journals/ads/guidelines/ en
dc.rights.uri https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm en
dc.rights.uri http://creativecommons.org/licenses/by/3.0/ en
dc.title A Measure of the Variability of Revenue in Auctions: A Look at the Revenue Equivalence Theorem en
dc.type Journal Article en
dc.identifier.doi 10.1155/JAMDS/2006/27417 en
pubs.volume 2006 en
dc.description.version VoR - Version of Record en
dc.rights.accessrights http://purl.org/eprint/accessRights/RestrictedAccess en
pubs.subtype Article en
pubs.elements-id 68631 en
pubs.org-id Business and Economics en
pubs.org-id Info Systems & Operations Mgmt en
pubs.number 27417 en
pubs.record-created-at-source-date 2010-09-01 en

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