118 research outputs found
Bidding behavior in the bisection auction – an experimental investigation
We present a laboratory experiment in which we investigate bidding behavior with independent private values in the recently proposed bisection auction, and compare it with two classical auction formats - the Vickrey auction and the English auction. We test whether subjects behave strategically equivalent, following the dominant truth-telling strategy, as predicted by theory. Furthermore, we provide some insights concerning the learning process, the efficiency of allocation, and the revenue to the auctioneer. Data show that the bisection auction performs better than the Vickrey auction and only in some terms worse than the English auction.Economics ;
Potential of regional fuel and energy complex with the typological features of regional development
Purpose: Fuel & Energy Complex (FEC) has a significant share in the economic system and has the most extensive potential for introducing innovations. Authors suggest innovative potential of regional FEC considering the specifics of regional economic development. Design/Methodology/Approach: To evaluate the attainability of economic growth in conjunction with the goals of energy efficiency and energy independence and to make decisions on adjustments in energy policy, the authors propose a three-component integrated index of elasticity of energy efficiency for each typological group of region, including the index of innovative potential of the regional Fuel & Energy Complex, the index of energy supply efficiency of consumers in the region and the sustainability index of the region’s energy system. Findings: The survey identified five typological groups of regions reflecting the features of regional FEC development. Considering the significance of factors affecting innovative potential, seven groups of such factors were proposed for formation, and the significance of each factor was determined in accordance with the typological group of the region. Practical implications: Each of the three components of the integrated index makes its specific contribution to the resulting quantitative indicator, the value of which will reflect the degree to which the regional energy policy has reached its target priorities, and to meet the urgent challenges of modern innovative sustainable energy technologies. Originality/Value: Realisation of the innovative potential of regional FEC should be closely linked with indicators of energy efficiency and energy independence in order to ensure the development of regional economies, including the achievement of global climate goals.peer-reviewe
The communication complexity of private value single item auctions
In this paper we present a new auction, the bisection auction, that can be used for the sale of a single indivisible object. We discuss the issue concerning the information revelation requirement of this auction and the associated amount of data that needs to be transmitted. We show that in the truthtelling equilibrium the bisection auction is economical in its demand for information on the valuations of the players. It requires the players to transmit less information bits to the auctioneer than the Vickrey and English auctions. In particular, we prove that for integer valuations uniformly distributed on the interval [0,L) the bisection auction of n players requires in expectation transmission of at most 2n + log L information bits by the players. Compared with the corresponding number in the Vickrey auction which is n log L, and in the English auction which is on average at least (1/3) nL, the bisection auction turns out to be the best performer.mathematical economics;
Inefficiency of equilibria in query auctions with continuous valuations
Query auctions are iterative auctions in which bidders have to select in each round an action from a finite set. We show that, when bidders have continuous valuations, any ex post equilibrium in an ex post individually rational query auction can only be ex post efficient when the running time of the auction is infinite for almost all realizations of valuations of thebidders. Thus, when valuations are drawn from a continuous probability distribution, efficiency can only be bought at the expense of a running time that is infinite with probability one. For two bidders we even show this to be true when we only require efficiency with probability one.mathematical economics;
On The Fastest Vickrey Algorithm
We investigate the algorithmic performance of Vickrey-Clarke-Groves mechanisms in the single item case. We provide a formal definition of a Vickrey algorithm for this framework, and give a number of examples of Vickrey algorithms. We consider three performance criteria, one corresponding to a Pareto criterion, one corresponding to worst case analysis, and a third criterion related to first-order stochastic dominance. We show that Pareto optimal Vickrey algorithms do not exist and that worst case analysis is of no use in discriminating between Vickrey algorithms. For the case of two bidders, we show the bisection auction to be optimal according to the third criterion. The bisection auction istherefore optimal in a very strong sense.operations research and management science;
Fraction auctions: the tradeoff between effciency and running time
This paper studies the sales of a single indivisible object where bidders have continuous valuations. In Grigorieva et al. [13] it was shown that, in this setting, query auctions necessarily allocate inefficiently in equilibrium. In this paper we propose a new sequential auction, called the c-fraction auction. We show c-fraction auctions guarantee approximate efficiency at any desired level of accuracy, independent of the number of bidders. We discuss the running time and the efficiency in the ex-post equilibrium of the auction. We show that by changing the parameter c of the auction we can trade off efficiency against running time.operations research and management science;
Inefficiency of equilibria in query auctions with continuous valuations
We show that, when bidders have continuous valuations, any ex post equilibrium in an ex post individually rational query auction can only be ex post efficient when the running timeof the auction is infinite for almost all realizations of valuations of the bidders. We also show that this result applies to the general class of bisection auctions. In contrast we show that, when we allow for inefficient allocations with arbitrarily small probability, there is a query auction (to be more specific, a bisection auction) that attains this level of approximate efficiency in equilibrium, while additionally the running time of the auction in equilibrium is finite for all realizations of valuations.mathematical economics;
The family of c-bisection auctions: efficiency and running time
In this paper we analyze the performance of a recently proposed sequential auction, called the c-bisection auction, that can be used for a sale of a single indivisible object. We discuss the running time and the e±ciency in the ex-post equilibrium of the auction. We show that by changing the parameter c of the auction we can trade o® e±ciency against running time. Moreover, we show that the auction that gives the desired level of e±ciency in expectation takes the same number of rounds for any number of players.computer science applications;
Extremely Cold Climate and Social Vulnerability in Alaska: Problems and Prospects
Cold exposure remains a significant public health concern, particularly in the Arctic regions prone to extremely cold weather. While the physical health impacts of cold exposure are well documented, understanding the social vulnerability aspects is crucial for effective mitigation and policy development. This study investigates the multifaceted dimensions of social vulnerability in the face of cold temperatures across various communities in Alaska. Alaska, renowned for its extreme cold temperatures and harsh environmental conditions, poses unique challenges to its residents, particularly in the context of social vulnerability. Drawing on a combination of quantitative data analysis and qualitative insights, we examine the factors contributing to social vulnerability, including demographic, economic, geographic, and infrastructural elements, in terms of the Extremely Cold Social Vulnerability Index, for seven Public Health Regions in Alaska. The Universal Thermal Climate Index in two very cold categories (<−27 °C) was used to identify cold exposure. Factors such as income, housing quality, health status, and resilience of the population play crucial roles in determining an individual or community’s sensitivity to, and ability to cope with, cold temperatures. Our analysis reveals that social vulnerability in Alaska is not uniform but varies significantly among regions. The research findings highlight the importance of considering factors of both sensitivity and adaptivity in understanding and addressing social vulnerability, thereby informing the development of targeted strategies and policies to enhance the resilience of Alaskan communities. As cold temperatures are projected to continue to challenge the region, addressing social vulnerability is essential for ensuring the well-being and safety of Alaska’s diverse populations.Fulbright Arctic Initiative 2021–2023German Research Foundation’s (DFG)NOAANSFPeer Reviewe
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