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Auction Theory

Introductory Exercises with Answer Keys

  • Presents 83 worked-out exercises on auction theory

  • Provides algebra support and step-by-step calculations

  • Includes exercises based on foundational journal articles

  • Ranks exercises according to difficulty for self-guided study

Part of the book series: Springer Texts in Business and Economics (STBE)

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eBook USD 59.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-69575-0
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book USD 79.99
Price excludes VAT (USA)
Hardcover Book USD 109.99
Price excludes VAT (USA)

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Table of contents (10 chapters)

  1. Front Matter

    Pages i-xiv
  2. Second-Price Auctions

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 1-26
  3. First-Price Auctions

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 27-61
  4. First-Price Auctions: Extensions

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 63-123
  5. All-Pay Auctions and Auctions with Asymmetrically Informed Bidders

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 125-163
  6. Third-Price Auctions, kth-Price Auctions, and Lotteries

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 165-185
  7. The Revenue Equivalence Principle

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 187-204
  8. Common-Value Auctions

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 205-224
  9. Multi-Unit Auctions

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 225-236
  10. Mechanism Design

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 237-250
  11. Procurement Auctions

    • Pak-Sing Choi, Felix Munoz-Garcia
    Pages 251-281
  12. Back Matter

    Pages 283-296

About this book

This textbook provides a short introduction to auction theory through exercises with detailed answer keys. Focusing on practical examples, this textbook offers over 80 exercises that predict bidders’ equilibrium behaviour in different auction formats, along with the seller’s strategic incentives to organize one auction format over the other. The book emphasizes game-theoretic tools, so students can apply similar tools to other auction formats. Also included are several exercises based on published articles, with the model reduced to its main elements and the question divided into several easy-to-answer parts. Little mathematical background in algebra and calculus is assumed, and most algebraic steps and simplifications are provided, making the text ideal for upper undergraduate and graduate students.

The book begins with a discussion of second-price auctions, which can be studied without using calculus, and works through progressively more complicated auction scenarios: first-price auctions, all-pay auctions, third-price auctions, the Revenue Equivalence principle, common-value auctions, multi-unit auctions, and procurement auctions. Exercises in each chapter are ranked according to their difficulty, with a letter (A-C) next to the exercise title, which allows students to pace their studies accordingly. The authors also offer a list of suggested exercises for each chapter, for instructors teaching at varying levels: undergraduate, Masters, Ph.D.

Providing a practical, customizable approach to auction theory, this textbook is appropriate for students of economics, finance, and business administration. This book may also be used for related classes such as game theory, market design, economics of information, contract theory, or topics in microeconomics.

Keywords

  • Auction theory
  • second-price auction
  • first-price auction
  • equilibrium bid
  • asymmetric bidding
  • Revenue Equivalence Principle
  • winner's curse
  • common-value auction
  • multi-unit auction
  • procurement auction

Authors and Affiliations

  • Graduate Institute of Industrial Economics, National Central University, Taoyuan City, Taiwan

    Pak-Sing Choi

  • School of Economic Sciences, Washington State University, Pullman, USA

    Felix Munoz-Garcia

About the authors

Pak-Sing Choi is assistant professor of economics at the Graduate Institute of Industrial Economics of National Central University, Taiwan. His research focuses on the effect of environmental regulation on industrial organization under asymmetric information.

Felix Munoz-Garcia is professor of economics at Washington State University (US). His research focuses on industrial organization, game theory, and their applications to environmental regulation in contexts where firms, government agencies, or both, are imperfectly informed.


Bibliographic Information

  • Book Title: Auction Theory

  • Book Subtitle: Introductory Exercises with Answer Keys

  • Authors: Pak-Sing Choi, Felix Munoz-Garcia

  • Series Title: Springer Texts in Business and Economics

  • DOI: https://doi.org/10.1007/978-3-030-69575-0

  • Publisher: Springer Cham

  • eBook Packages: Economics and Finance, Economics and Finance (R0)

  • Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021

  • Hardcover ISBN: 978-3-030-69574-3Published: 25 May 2021

  • Softcover ISBN: 978-3-030-69577-4Published: 26 May 2022

  • eBook ISBN: 978-3-030-69575-0Published: 24 May 2021

  • Series ISSN: 2192-4333

  • Series E-ISSN: 2192-4341

  • Edition Number: 1

  • Number of Pages: XIV, 296

  • Number of Illustrations: 1 b/w illustrations, 51 illustrations in colour

  • Topics: Quantitative Economics, Game Theory, Microeconomics

Buying options

eBook USD 59.99
Price excludes VAT (USA)
  • ISBN: 978-3-030-69575-0
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book USD 79.99
Price excludes VAT (USA)
Hardcover Book USD 109.99
Price excludes VAT (USA)