Auction Theory and Design

Auction Theory and Design explores how auctions operate and how they can be structured for efficiency and fairness. It examines different auction formats—like sealed-bid or English auctions—and analyzes how bidders' behavior affects outcomes. The goal is to maximize seller revenue while ensuring that bidders can compete effectively. By understanding strategies and preferences, designers can create auctions that minimize issues like collusion and bidder fatigue, leading to better outcomes for all parties involved. This field combines elements of economics, game theory, and behavioral science to optimize the auction process.