English vs. Vickrey Auction
Not what you're looking for?
Briefly describe the difference between the mechanism of an oral or English auction and a Vickrey or second price auction. Is there any difference between the winning bidders in the two auctions, and the winning payments made in the two auctions? Briefly explain.
Purchase this Solution
Solution Summary
The response addresses the queries posted in 479 words with references.
Solution Preview
The mechanism of an oral or English auction is an open outcry auction. It is a progressive auction in which, the auctioneer releases relevant auctions with the help of announcing a suggested opening bid. In this suggested opening bid, there is a provision of the starting price, and then acceptance of higher bids occur with the probable interest in them. As the name suggests, this is an open outcry auction; therefore, it is entirely transparent. All the bidders know each other at the time of auction (Harstad & Rothkopf, 2000).
On the other hand, a Vickrey or second price auction is a sealed bid auction, which has some dissimilarity than English auction. It is not an open auction, because bidders propose written bids without recognizing the pertinent bid of the other ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
Recent Feedback
- "Thank You so much! "
- "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
- "great job. I will need another help from you. "
- "first class!"
- "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.