COS 444 - Internet Auctions: Theory and Practice

Spring 2010

Date Slides / Topics / Links etc. Due

Tue, Feb 2 1    course goals, methodologies, common auction forms

Thu, Feb 4 history, theoretical setup, variants of the English auction, dominant strategies read Vickrey61 prose in §§ II, III

Tue, Feb 9 2    Vickrey auctions, first-price and Dutch auctions, the four basic forms

Thu, Feb 11 mail-bid sales, evolution to eBay, ending rules    Buy-or-Bid    Terms of Sale read Shohat-Musch03

Tue, Feb 16 3    simplest rev. equiv.    quick intro probability    order statistics Ass. 1 due

Thu, Feb 18 revenue equiv. w. uniform values    intro to empirical work: LR99 (testing RE) read LR99

Tue, Feb 23 4    FP equil: bid space    Maple code    check FP monotonicity    eBay's algorithm    law suit    eBay observed Ass. 2 due

Thu, Feb 25 FP equil: value space    Katkar-LR00 (reserves on eBay)    all-pay auction, rev. equiv. w. uniform v's read Katkar-LR00

Tue, Mar 2 5    all-pay auctions    SP, FP revenue; more general rev. equiv.

Thu, Mar 4 to snipe or not to snipe: information revelation, implicit collusion, endowment effect, field evidence: RO02 read RO02

Tue, Mar 9 6    sniping, con't    anonymity    conditional expectation, stronger rev. equiv., graphical interpretation    Ass. 3 due

Thu, Mar 11 preference revelation    optimal auctions: RS81    marginal revenue, interpretation

Tue, Mar 16 No class - spring break       March madness (2010)       what happens to bad emperors

Thu, Mar 18 No class - spring break       John Nash, 8pm, CS 104

Tue, Mar 23 7    term papers    third-price auctions: wolfstetter95    field test of RE on eBay: HM04    1-sided binomial test read RS81, pp. 381-3; HM04

Thu, Mar 25 optimal reserve in RS81 auctions    field test of FP reserve pre-eBay: LR00 Ass. 4 due

Tue, Mar 30 8    discuss Ass. 4    all-pay with res.    other auctions: Sad-losers; Santa-Claus; price-match finish reading RS81

Thu, Apr 1 other auctions (con't),    risk aversion    Ioannidis05 look at penny auctions

Tue, Apr 6 9    auctions w. asymm. bidders: Myerson81, BR89    revelation principle    optimal mechanisms    swoopo read Myerson81 §§ 1-3

Thu, Apr 8 laboratory evidence    spite: MSR03    evolution: MS03 Ass. 5 due

Tue, Apr 13 10    Winner's Curse    common values    Wilson69 CCC71    discuss Ass. 5    affiliated values, linkage principle, rev. ranking: MW82    Esnipe on surplus    FSR on early bidding read MW82, §§ 1,2

Thu, Apr 15 Guest lecturer: Prof. S. Muthu Muthukrishnan, "Internet Ad Exchanges" read CCC71

Tue, Apr 20 11    discuss term paper proposals TP proposal due

Thu, Apr 22 intro to multi-unit auctions, demand reduction, VCG mechanism M01, AC98 :: notes multi-item,
VCG in combinatorial auctions, complexity    beauty contest: Nagel95

Tue, Apr 27 12    bidder collusion: FCC spectrum auctions    rings: Graham-Marshall87 :: notes    shills

Thu, Apr 29 impossibility of efficient bilateral trade: MS83 :: notes    auctions v. negotiations: Bulow-Klemperer96 :: notes
price bubbles in the lab: Porter-Smith 03    rational frenzies: Bulow-Klemperer94 :: notes    agent-based simulation Ass. 6 due

Date	Slides / Topics / Links etc.	Due
Tue, Feb 2	1 course goals, methodologies, common auction forms
Thu, Feb 4	history, theoretical setup, variants of the English auction, dominant strategies	read Vickrey61 prose in §§ II, III
Tue, Feb 9	2 Vickrey auctions, first-price and Dutch auctions, the four basic forms
Thu, Feb 11	mail-bid sales, evolution to eBay, ending rules Buy-or-Bid Terms of Sale	read Shohat-Musch03
Tue, Feb 16	3 simplest rev. equiv. quick intro probability order statistics	Ass. 1 due
Thu, Feb 18	revenue equiv. w. uniform values intro to empirical work: LR99 (testing RE)	read LR99
Tue, Feb 23	4 FP equil: bid space Maple code check FP monotonicity eBay's algorithm law suit eBay observed	Ass. 2 due
Thu, Feb 25	FP equil: value space Katkar-LR00 (reserves on eBay) all-pay auction, rev. equiv. w. uniform v's	read Katkar-LR00
Tue, Mar 2	5 all-pay auctions SP, FP revenue; more general rev. equiv.
Thu, Mar 4	to snipe or not to snipe: information revelation, implicit collusion, endowment effect, field evidence: RO02	read RO02
Tue, Mar 9	6 sniping, con't anonymity conditional expectation, stronger rev. equiv., graphical interpretation	Ass. 3 due
Thu, Mar 11	preference revelation optimal auctions: RS81 marginal revenue, interpretation
Tue, Mar 16	No class - spring break March madness (2010) what happens to bad emperors
Thu, Mar 18	No class - spring break John Nash, 8pm, CS 104
Tue, Mar 23	7 term papers third-price auctions: wolfstetter95 field test of RE on eBay: HM04 1-sided binomial test	read RS81, pp. 381-3; HM04
Thu, Mar 25	optimal reserve in RS81 auctions field test of FP reserve pre-eBay: LR00	Ass. 4 due
Tue, Mar 30	8 discuss Ass. 4 all-pay with res. other auctions: Sad-losers; Santa-Claus; price-match	finish reading RS81
Thu, Apr 1	other auctions (con't), risk aversion Ioannidis05	look at penny auctions
Tue, Apr 6	9 auctions w. asymm. bidders: Myerson81, BR89 revelation principle optimal mechanisms swoopo	read Myerson81 §§ 1-3
Thu, Apr 8	laboratory evidence spite: MSR03 evolution: MS03	Ass. 5 due
Tue, Apr 13	10 Winner's Curse common values Wilson69 CCC71 discuss Ass. 5 affiliated values, linkage principle, rev. ranking: MW82 Esnipe on surplus FSR on early bidding	read MW82, §§ 1,2
Thu, Apr 15	Guest lecturer: Prof. S. Muthu Muthukrishnan, "Internet Ad Exchanges"	read CCC71
Tue, Apr 20	11 discuss term paper proposals	TP proposal due
Thu, Apr 22	intro to multi-unit auctions, demand reduction, VCG mechanism M01, AC98 :: notes multi-item, VCG in combinatorial auctions, complexity beauty contest: Nagel95
Tue, Apr 27	12 bidder collusion: FCC spectrum auctions rings: Graham-Marshall87 :: notes shills
Thu, Apr 29	impossibility of efficient bilateral trade: MS83 :: notes auctions v. negotiations: Bulow-Klemperer96 :: notes price bubbles in the lab: Porter-Smith 03 rational frenzies: Bulow-Klemperer94 :: notes agent-based simulation	Ass. 6 due