Auctions, Sales and Procurement

BUS448 Auctions, Sales and Procurement

  • Topics

    Topics

    -Auctions are used to sell a variety of goods ranging from basic commodities such as fish and flowers to houses and antiques. Furthermore, in many industries firms have to place competitive bids in order to win contracts or they select suppliers by arranging tender competitions. This course introduces students to standard auction formats that are commonly used both to sell and procure (buy) goods and services. In particular students will learn about the most common types of auctions. They will analyse bidders¿ behavior and the auctioneer¿s revenues in these auctions. Important issues that might prevent an auction or procurement from running efficiently (collusion, non-contractible dimensions etc.) will be discussed and possible remedies for these issues.

  • Learning outcome

    Learning outcome

    Knowledge:

    Upon completion students should: - understand when and why auctions are beneficial - understand the basic mechanism and incentives at play in an auction - understand why auction design is crucial and that there is no "one size fits all" in auction theory

    Skills:

    Upon completion students should: - - be able to characterize the basic mechanism and incentives at play in an auction - be able to identify potential issues that might prevent an auction from performing as planned - be able to suggest ways of minimizing the risk related to issues such as the winner's curse, collusion and non-contractible dimensions.

  • Teaching

    Teaching

    Standard lectures

  • Recommended prerequisites

    Recommended prerequisites

    Basic game theory and mathematics in the branch of calculus

  • Requirements for course approval

    Requirements for course approval

    1-2 assignments

  • Assessment

    Assessment

    4 hour written school exam counting 100% of grade.

  • Grading Scale

    Grading Scale

    Grading scale: A - F.

  • Semester

    Semester

    Autumn

  • Literature

    Literature

    Paul Klemperer. Auctions: Theory and Practice. Princeton University Press Nicola Dimitri, Gustavo Piga and Giancarlo Spagnolo. Handbook of Procurement. Cambridge University Press

    Gregor Berz: Game Theory Bargaining and Auction Strategies: Practical Examples from Internet Auctions to Investment Banking

    Articles and other material announced in class.

Oppsummering

Studiepoeng
7.5
Undervisningsspråk
English
Semester
Høst

Course responsible

Malin Arve, Institutt for foretaksøkonomi