CSCE 496/896

Game Day 1: Auction Day

Game Package

October 17 2002

 

Introduction

 

Welcome to Soh’s Auction House.  Today, we have a collection of rare items, in mint conditions, to offer to you—our much appreciated and esteemed collectors who are intelligent and skilled in many auction protocols.  Hope you succeed in your ventures today.  Good luck.

 

This document is supplementary to Game Day 1: Auction Day assignment.

 

Monopoly Money

 

You have a total of $1030.  The distribution of the money bills is:

 

Face Value

# Bills

$500

1

$100

2

$50

3

$20

5

$10

5

$5

5

$1

5

 

Check your money.  Make sure that the amount is correct.

 

Procedure

 

There are five rounds of auctions.  For each round, two items will be on the auction block.  For each round, you will have 2 minutes of preparation time.  And you will also have 3 minutes of post-auction time to summarize your activities for the round, and also to discuss strategies based on your observations of other groups.  (Use your Worksheet to document your activities, attached.)  For every item that you bid, regardless of the auction outcome, you have to pay a fee: $1.  I will collect this at the end of each round.  If you sit out, then you will not have to pay a fee.

 

You can bring your textbook and notes to make sure that you follow the auction protocols correctly.  Failure to follow the protocols will cost you $2 per violation.  You are not allowed to ask me (the auctioneer) any questions about the protocols during the game.

 

Protocol

English Auction (first-price, open-cry)

English Auction (first-price, open-cry) 2

Dutch (descending) Auction

First-Price Sealed-Bid Auction

Vickrey (Second-Price Sealed-Bid) Auction

 

Your Utility and Money

 

Each item on the auction block has two values, from your point of view.  One is the actual dollar amount of that item, another is the utility of that item to you.  For example, an item may be listed to worth only $10, but in terms of utility, you may be willing to pay $20 for it.  So, for each item, you will be given the following:

 

Round

Item

Market Worth

Your Utility

1, English

Exotic Item #1

$X

$Y

 

So, each group will receive in the Game Package a list of items with the group’s utility, in terms of dollar amounts.  And your “utility” list is only known to you and not other groups.

 

Your goal is to achieve as high as possible a sum of (1) your remaining monopoly money and (2) the total utility of the items you obtain.  So, for example, if you do not participate in any of the auction rounds, you will have a sum of $1030 in the end.  But, for example, if you participate in one round and obtain exotic item #3 with a utility of $150 to you, and it only costs you $50, then your final sum will be $1030 - $1 (fee) - $50 + $150 = $1129.  So, you will gain $99. 

 

Your goal is not to win each round, but to win the Game Day.

 

The group with the highest sum is the winner.

Auction Day Work Sheet

 

Round 1:  English Auction (first-price, open-cry)

 

Item 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 2

Auction Day Work Sheet

 

Round 2:  English Auction (first-price, open-cry) 2

 

Item 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 4

 

 

Auction Day Work Sheet

 

Round 3:  Dutch (descending) Auction

 

Item 5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 6

Auction Day Work Sheet

 

Round 4:  First-Price Sealed-Bid Auction

 

Item 7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 8

Auction Day Work Sheet

 

Round 5:  Vickrey (Second-Price Sealed-Bid) Auction

 

Item 9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 10