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As discussed in class, Google uses a second price auction for pricing.
Who thinks I should sell it–Who thinks I'll get more revenue from a second price auction?
Who thinks I can expect more revenue from a second price auction in which people will bid their values but I only get the second price?
A great deal of late bidding has been observed on internet auctions such as eBay, which employ a second price auction with a fixed deadline.
A second price reporter from the gas industry has raised concerns about manipulation of wholesale energy markets, saying he saw suspect trading activity in the autumn of 2011.
This is because the auction used a second price rule, in which winners only pay a little more than the sum offered by the second highest bidder.
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In addition to the Early Adopter Discount, the company is announcing a second pricing program called BUG+EDU.
But the presence of a second priced option creates the impression that the free option with its 'basic services' is inadequate for serious users.
So I'm selling the good now, would I rather sell this as a second-price auction in which at least you'll bid your values but the winner will only pay the second value; or would I rather sell it as a first price auction in which you're all going to shade your values because of this effect of trying to get some surplus, but at least the winner will actually pay you what they bid.
Who thinks I'll get more revenue from a first price auction?
In a first price auction you're going to shade your bid under your value.
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CEO of Professional Science Editing for Scientists @ prosciediting.com