scholarly journals Auction theory and its practical application

2021 ◽  
pp. 143
Author(s):  
Oksana Shymanska

Introduction.The large-scale use of auctions today in various fields, while avoiding distortions in the behavior of economic agents is considered by scientists as one of the effective tools to improve public welfare. Research conducted by Nobel Laureates in Economics 2020 Paul Milgrom and Robert Wilson has made it possible to rethink the possibilities of reformatting auctions to ensure the maximum benefit from their holding for all subjects. P. Milgrom and R. Wilson demonstrated how the technically complex«constructions» of economics to build optimal auction designs make it possible to obtain complete material benefits for society.Prupose.To substantiate the specifics of auction theory, the formats of the latter and the contribution to their development of P. Milgrom and R. Wilson - winners of the Nobel Prize in Economics in 2020.Methods. During the preparation of the article general scientific research methods were used: analysis, synthesis, induction, deduction, as well as the method of formalization, which greatly contributed to the possibility of identifying the specifics of auction theory, their formats and substantiation of scientific achievements of Nobel Laureates in Economics P. Milgrom and R. Wilson in the development of theory and practice of auctions.Results. Research by P. Milgrom and R. Wilson, awarded the Nobel Prize «for improvements to auction theory and inventions of new auction formats»), prove that auction theory is an effective tool for regulators and governments of different countries that are interested in finding ways to most effectively use certain assets. Unlike most economic models, which usually require simplification and abstraction, the conclusions of scientists in auction theory can be applied in a specific practical area - from trade in raw materials and securities - to public procurement, tenders, subsoil and radio frequency, online advertising, etc. While previous researchers, including W. Vickrey and R. Myerson, devoted their work to private value auctions (when for each buyer the value of the object is known only to him and does not depend on the opinion of other auction participants), R. Wilson in the late 1960s, focused on the analysis of auctions with common value (when the object is of equal value to all auction participants, but each of them may have its own unique information about it). In particular, at auctions for the right to produce oil in a certain area, its value for all bidders is the same, but information on the field reserves and the specifics of the area may be different. R. Wilson also argued what should be the behavior of a rational bidder to avoid the so-called «winner’s curse» (a situation in which the winner of the object will pre- set an excessively high price, if guided solely by their own assessment of profits). Radio frequency auctions in the United States are the largest and best-known example of the practical application of the findings of R. Wilson and P. Milgrom, which made the previously inefficient and virtually free distribution of licenses a way to win for sellers and buyers and society as a whole.Discussion. Auction theory will continue to develop in the future, taking into account the new challenges posed, in particular, the need to develop tools and mechanisms for conducting virtual auctions in order to adequately adapt to digital reality. The need to develop a «road map» to address the shortcomings inherent in the existing auction formats in terms of taking into account the accelerated development of technology, increasing mobility, globalization and digitalization of the economy.

2021 ◽  
Vol 38 (76) ◽  
pp. 279-296
Author(s):  
Leandro Arozamena ◽  
Andres Fioriti ◽  
Federico Weinschelbaum

The 2020 Economics Nobel Prize was awarded to Paul Milgrom and Robert Wilson. Both laureates have made seminal, crucial contributions to auction theory and practical market design. Here, we briefly describe those contributions and their significance within the general context of auction theory and practice. We also review the laureates’ substantial and highly influential work in other areas of economics.


1985 ◽  
Vol 47 ◽  
pp. 4-5
Author(s):  
Paul F. Diehl ◽  
Michael J. Montgomery

Simulation is an increasingly popular pedagogical device; much of the recent literature on the theory and practice of political science instruction attests to this. Probably the most popular simulation device is called model United Nations. In recent articles in Teaching Political Science and NEWS for Teachers of Political Science, William Hazelton and James Jacob have described Model United Nations in glowing terms, focusing on one particular conference and completely ignoring the rest of the 200 or more conferences held annually across the United States.Like Jacob and Hazelton, we recognize the great potential value of United Nations simulations in trying to illuminate the often confusing politics of international organizations. As former participants and directors of these programs, however, we are keenly aware of the shortcomings and difficulties associated with the existing structure of model U.N. programs.


1994 ◽  
Vol 20 (1-2) ◽  
pp. 203-229
Author(s):  
John D. Blum

National economies worldwide are in disarray, evidenced by escalating debts and growing deficits. As countries struggle with their faltering economies they are hard pressed to fulfill commitments of social programs made in more prosperous times, much less take on new government initiatives. The current experiences in health reform in the United States present an interesting example of the dilemmas governments now face when they embark on new ventures. While great political pressures have been launched and high expectations abound, the reality of American health reform quickly reveals that expanded access will come at a high price that won't be offset easily by conventional cost containment or market forces.In the search for an acceptable model for health reform, it was popular for policy makers and academics to turn their attentions to the health systems of other nations. Recommendations were made that the US should adopt a German or Canadian solution for our health problems.


2021 ◽  
pp. 2046147X2199601
Author(s):  
Diana Zulli ◽  
Kevin Coe ◽  
Zachary Isaacs ◽  
Ian Summers

Public relations research has paid considerable attention to foreign terrorist crises but relatively little attention to domestic ones—despite the growing salience of domestic terrorism in the United States. This study content analyzes 30 years of network television news coverage of domestic terrorism to gain insight into four theoretical issues of enduring interest within the literature on news framing and crisis management: sourcing, contextualization, ideological labeling, and definitional uncertainty. Results indicate that the sources called upon to contextualize domestic terrorism have shifted over time, that ideological labels are more often applied on the right than the left, and that definitional uncertainty has increased markedly in recent years. Implications for the theory and practice of public relations and crisis management are discussed.


2021 ◽  
Vol 13 (8) ◽  
pp. 4151
Author(s):  
Amit Arora ◽  
Anshu Arora ◽  
Julius Anyu ◽  
John McIntyre

This research examines supply chain collaboration effects on organizational performance in global value chain (GVC) infrastructure by focusing on GVC disaggregation, market turbulence, inequality, market globalization, product diversity, exploitation, and technological breakthroughs. The research strives to develop a better understanding of global value chains through relational view, behavioral, and contingency theories along with institutional and stakeholder theories of supply chains. Based on conflicting insights from these theories, this research investigates how relationships and operational outcomes of collaboration fare when market turbulence is present. Data is obtained and analyzed from focal firms that are engaged in doing business in emerging markets (e.g., India), and headquartered in the United States. We investigate relational outcomes (e.g., trust, credibility, mutual respect, and relationship commitment) among supply chain partners, and found that these relational outcomes result in better operational outcomes (e.g., profitability, market share increase, revenue generation, etc.). From managerial standpoint, supply chain managers should focus on relational outcomes that can strengthen operational outcomes in GVCs resulting in stronger organizational performance. The research offers valuable insights for theory and practice of global value chains by focusing on the GVC disaggregation through the measurement of market turbulence, playing a key role in the success of collaborative buyer–supplier relationships (with a focus on US companies doing business in India) leading to an overall improved firm performance.


1956 ◽  
Vol 11 (1) ◽  
pp. 92
Author(s):  
Helen C. Potter ◽  
Albert H. Mowbray ◽  
Ralph H. Blanchard

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