Sharif Digital Repository

Auction literature and economic theories advocate common valuation among bidders in mineral rights auctions. In this study, we have tried to examine the assumption of common valuation between bidders in a first price sealed bid auction. It examines the common valuation hypothesis by assuming the information symmetry and the exogenous entry of bidders. The findings of this study suggest that bidders’ valuation in a first price sealed bid auction of natural resources may be private or common value. We use the non-parametric estimation model to find that after the federal government imposed Area-wide Leasing in the Gulf of Mexico, bidders’ valuations changed from private valuation to common... 

One of the most common applications of multi-unit auctions is the energy markets, including the electricity markets. In this study, using the simulation of a uniform price wholesale electricity market, the effects of the price ceiling on the behavior of power plants and market clearing prices have been investigated. The results show that the implication of price ceilings causes power plants to reduce the slope of their bidding function near the ceiling price, and as a result, the market-clearing price decreases compared to the previous state in the absence of the price ceiling. It was also observed that the higher the probability of reaching the price ceiling (higher total demand), the more... 

Auction is one of the most important and oldest institutions in economics, enabling resource allocation and trade of goods in the economy. Investigating the effects of changes in reservation price in auctions is an important question in auction theory research. In this study, focusing on a policy implemented by Yektanet, which involved altering the reservation price in auctions for advertising slots, we assessed its impact on advertiser costs. The implemented policy led to the activation of two distinct mechanisms, resulting in conflicting effects on the company's revenue. The first mechanism involved an increase in bid and intensified competition for ad placements on average, while the...