Abstract
Why did the company for awarding the cafeteria construction project1 select a Dutch auction as negotiation form? It is not very easy for an auctioneer in individual cases to decide which of the four auction forms produces the best result. The Dutch auction essentially provides the same result as a first-price-sealed-bid auction, that is, the highest bid in the form “indifference price plus strategic margin”. On the other hand, a second-price-sealed-bid auction and an English auction are second-price auctions. They both provide the second-best indifference price as final result.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Copyright information
© 2015 Gregor Berz
About this chapter
Cite this chapter
Berz, G. (2015). Selection of an Auction Form. In: Game Theory Bargaining and Auction Strategies. Palgrave Macmillan, London. https://doi.org/10.1057/9781137475428_8
Download citation
DOI: https://doi.org/10.1057/9781137475428_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-69293-4
Online ISBN: 978-1-137-47542-8
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)