Economics for Managers ECO 6301
Unit VII Journal
This journal measures your mastery of ULOs 3.2, 4.1, 4.2, and 7.2.
Journal objective: Auctions can be an important tool for selling/buying goods and gathering information. Auctions are used in multiple venues including agriculture, eBay, and distressed asset sales. The seller does not have to worry about estimating demand and setting a price because the demanders will do that through the auction process.
Length: Your submission is required to be at least 2-pages in length and not more than 5 pages, not including the title page and references.
References: A minimum of 3 peer-reviewed references are required, any additional resources used are required to be scholarly/academic in nature and found in the CSU Library. APA formatting is required be used for citations and references. Use this definition to define the term in the instructions.
Definitions: Scholarly journals are sometimes called academic journals. The terms are often used interchangeably to describe the same type of publication. These types of publications are published by universities, academic institutions, professional associations, and commercial enterprises and are compiled by scholars, academics, and other subject authorities.
Details: Write a journal response examining the value of auctions in the economy by addressing the following items:
· Introduction
· Explain the difference between oral auctions and second-price auctions, including how they work and their results.
· Use the expected value information to illustrate how having more bidders in an oral auction will likely result in a higher winning bid.
· Explain how the number of bidders in a common value auction affects the outcome of the auction. Relate this to the effect on price in different market structures based on the number of producers.
· Auctions lead to outcomes where buyers reveal their value for the products being auctioned. To successfully price discriminate, firms often rely on buyers revealing their value for products. Explain the conditions necessary for firms to be able to price discriminate.
· Conclusion