The following video describes auctions as price discovery mechanisms https://www.youtube.com/watch?v=4kWuxfVbIaU.
Use the video on auctions and at least 3 academic and/or high-quality business publications, see definitions below, to answer the following questions in 5-7 pages:
1. There are many types of auctions each with strengths and weakness at uncovering the real price/value of an item. Compare and contrast:
a) the English and Dutch auctions; and,
b) the sealed-bid, first-price auction, and the Vickery Auction.
2. Concierge Auctions Limited sells very high end and unique properties worldwide using an English style auction, selling to the highest bidder. They have been embroiled in multiple lawsuits see the link to the Wall Street Journal. Advise Concierge as to the weakness that an English auction may have in uncovering a propertyâ€s value. Provide a recommendation for at least one other auction type which may better uncover the value of unique real estate properties.
https://www.wsj.com/articles/luxury-real-estate-firm-concierge-auctions-fights-allegations-of-fraudulent-bids-11549568689
3. Auctions are widely used in finance, e-commerce and in e-games. Identify 3 uses of auctions by firms in finance, e-commerce and/or e-games. Explain the:
a) need for an auction in the product/service, and
b) what type of auction is used and why that type of auction is appropriate for the product/service.
4. Auctions are also widely used to generate revenue for not-for-profit organizations. What are the advantages/disadvantages of auctions as revenue generators for not-for-profit organizations?
5. Suggest ways in which the company you work for, or the company which you aspire to work for, can use auctions to better uncover value and increase revenue.
