Descending Clock Auction
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- A group of bidders participates in an auction
- Current Price decreases every few seconds
- At any point, you may claim a unit
- You can only claim a maximum of one unit
- Auction ends when all units are claimed
- Price (for all units) = Current Price of the last unit claimed
- Your screen displays:
- the range of possible bidder values for the item;
- your value for the item.
- To claim the item, press Claim
- For those who claimed an item: Payoff = Value of the item - Price
- For those who did not claim an item: Payoff = 0
Example
- Current price when last item is claimed = $20
- Claimer's value of item = $30
Payoff |
= |
Value |
- |
Final Price |
$10 |
= |
$30 |
- |
$20 |