The content delves into the comparison of pre- and post-auction discounts in first-price auctions. It explores how different discount strategies impact auction outcomes, equilibrium, bidder preferences, and seller revenue. The analysis includes theoretical frameworks, empirical data from online advertising auctions, estimation of bid functions under discounting, and detailed statistics on auction outcomes based on various discount rates.
The study reveals that additive discounts lead to equivalent outcomes in auctions. However, for multiplicative discounts, adjustments are necessary to ensure corresponding equilibria between pre- and post-discount scenarios. The research provides insights into optimal bidding strategies under different discount levels and their effects on auction dynamics.
Key points include the comparison of bid augmentation and price reduction methods, estimation of bid functions for valuation distributions using real data from Yahoo! ad exchange, and statistical analysis of auction outcomes under varying discount rates. The content highlights the impact of discounts on seller revenue, bidder surplus, costs, efficiency, win rates, and bidder behavior in asymmetric auctions.
Overall, the study offers a comprehensive analysis of discount strategies in first-price auctions with valuable insights for understanding auction dynamics and optimizing bidding behavior.
To Another Language
from source content
arxiv.org
Principais Insights Extraídos De
by Miguel Alcob... às arxiv.org 03-12-2024
https://arxiv.org/pdf/2403.06278.pdfPerguntas Mais Profundas