Lowest-unique sealed-bid auctions are auctions with endogenous participation, costly bids, and the lowest bid among all unique bids wins. Properties of symmetric NEs are studied. The symmetric NE with the lowest expected gains is the maximin outcome under symmetric strategies, and it is the solution to a mathematical program. Comparative statics for the number of bidders, the value of the item and the bidding cost are derived. The two bidders’ auction is equivalent to the Hawk–Dove game. Simulations of (...) replicator dynamics provide numerical evidence that the symmetric NE with the lowest expected gains is also asymptotically stable. (shrink)

Lowest-unique sealed-bid auctions are auctions with endogenous participation, costly bids, and the lowest bid among all unique bids wins. Properties of symmetric NEs are studied. The symmetric NE with the lowest expected gains is the maximin outcome under symmetric strategies, and it is the solution to a mathematical program. Comparative statics for the number of bidders, the value of the item and the bidding cost are derived. The two bidders’ auction is equivalent to the Hawk–Dove game. Simulations of (...) replicator dynamics provide numerical evidence that the symmetric NE with the lowest expected gains is also asymptotically stable. (shrink)

The paper reports experimental data on the behavior in the first-price sealed-bid auction for a varying number of bidders when values and bids are private information. This feedback-free design is proposed for the experimental test of the one-shot game situation. We consider both within-subjects and between-subjects variations. In line with the qualitative risk neutral Nash equilibrium prediction, the data show that bids increase in the number of bidders. However, in auctions involving a small number of bidders, average bids (...) are above, and in auctions involving a larger number of bidders, average bids are below the risk neutral equilibrium prediction. The quartile analysis reveals that bidding behavior is not constant across the full value range for a given number of bidders. On the high value quartiles, however, the average bid–value ratio is not different from the risk neutral prediction. The behavior is different when the winning bid is revealed after each repetition. (shrink)

In this paper we examine optimal bidding without the independence axiom in a unified framework which allows for a clear graphical representation. Thus, we can show very simply the independence axiom to be a necessary and sufficient condition on preferences for strategical equivalence of the two first-price and second-price auctions, respectively, and for the second-price sealed-bid auction to be demand revealing. The analysis reveals that the betweenness property is necessary and sufficient for the ascending-bid auction to be (...) demand revealing while optimal bids exceed (are less than) bidders' valuations, iff preferences are quasiconcave (quasiconvex). Furthermore, it can be shown that fanning out (fanning in) leads to a higher (lower) selling-price in open than in sealed-bid auctions. (shrink)

The winner’s curse in auctions might emerge from asymmetric information and/or from some willingness to pay for winning. This article is based on a sealed-bid common value first price auction, with a net loss for the subject with the second highest bid. The results show the existence of a trade-off between the magnitude of the potential loss and the willingness to pay for the victory. In the context of public procurement these results suggest that companies are willing to (...) overpay small contracts to gain a sort of ‘free advertising’, whereas this is not the case when the contracts are large. (shrink)

I analyze optimal auction design in the presence of linear type-dependent negative externalities. I characterize the properties of the optimal mechanism when externalities are “strongly decreasing” and “increasing” in the agent’s valuation and I discuss its implementation with sealed-bid auctions. Interestingly, bidding strategies are not necessarily increasing in valuations, and the optimal mechanism can be implemented by setting a price ceiling instead of a reserve price.

PurposeThe purpose of this paper is to present implications of the seller's ability to bid in the four classical auction forms, with independent private values: English, Dutch, first‐ and second‐price auctions.Design/methodology/approachUnder each auction form, the identity of the winning bidder and the expected winning bid are compared between the case when the seller may bid and when he cannot, using equilibrium bidder strategies. The seller's incentive to bid is evaluated.FindingsThe strategies and the welfare results differ with auction (...) type and underlying information assumptions – bidders are either aware or unaware of the seller's ability to bid. In the Dutch and the first‐price auctions, seller‐bidding does not affect any classical results. In the English and the second‐price auctions, it leads to no lower expected prices than without it and higher prices with positive probability. In the English and the second‐price auctions, the seller bids above his reservation value and may unintentionally win the auction. These auctions result in inefficiency with positive probability.Practical implicationsThe English and the second‐price auctions are the most common real‐world auctions. In these auctions, the seller's ability to bid – secretly or publicly – redistributes welfare among participants and introduces a possibility of inefficiency. Making this ability publicly known does not solve the latter problem. Auctioneers must prevent the seller from bidding, or must select a different auction form when seller‐bidding is anticipated.Originality/valueThe paper clarifies to regulators, auction designers, bidders, and other readers which auction forms are susceptible to subversion by seller‐bidding and what the potential damages are. (shrink)

Professor Vernon L. Smith is a major creator of the new discipline of experimental economics. This collection of his papers from 1962 to 1990 surveys key developments in the field from early attempts to study economic behaviour in now classic double oral auction markets through recent studies of industrial organization and decision making. Topics covered include monopoly and oligopoly, supply and demand theory under posted pricing, uniform pricing, double continuous auction, and sealed bid-offer auctions; hypothetical valuation and (...) market pricing; asset price bubbles; predatory pricing; market contestability and natural monopoly; and the methodology of experimental economics. Taken together, the papers form a history of the study of economics under controlled conditions. (shrink)

Internet fraud is an issue that increasingly concerns regulators, consumers, firms, and business ethics researchers. In this article, we examine one common form of internet fraud, the practice of shill bidding (when a seller in an auction enters a bid on his or her own item). The significant incidence of shill bidding on eBay (in spite of the fact that it is illegal just as it is in live auctions) exemplifies the current ineffectiveness of regulatory means as well as (...) the lack of effective societal mechanisms to prevent online fraud. Further, the proliferation of shill bidding along with other types of internet fraud may have broader implications. If unethical behavior such as shill bidding becomes too widespread on the internet, regulators and other societal forces may deem it necessary to institute controls that will impact the entire online marketplace as well as the future development and regulation of business activities on the internet. Our results indicate that shill bidding is perpetrated on eBay significantly more often than 0.1% rate of fraud estimated by the firm. This suggests that regulators, users, and others stakeholders may become concerned enough to act. The impact of those responses on the internet of the future may affect a broad array of users beyond the unethical sellers on eBay. (shrink)

We show that linear logic can serve as an expressive framework in which to model a rich variety of combinatorial auction mechanisms. Due to its resource-sensitive nature, linear logic can easily represent bids in combinatorial auctions in which goods may be sold in multiple units, and we show how it naturally generalises several bidding languages familiar from the literature. Moreover, the winner determination problem, i.e., the problem of computing an allocation of goods to bidders producing a certain amount of (...) revenue for the auctioneer, can be modelled as the problem of finding a proof for a particular linear logic sequent. (shrink)

The article presents an Internet experiment where subjects sequentially bid for basic gifts and binary-lotteries on these gifts in incentive compatible Vickrey auctions. Subjects exhibit uniformly pessimistic prize-weighting in spite of precautions to reduce suspicion and prohibit collusion. The bids for lotteries are close to the minimal payable value, even when the probability of obtaining a better prize is larger than 50%. Prize-weighting becomes even more conservative as the distance in value of payable prizes increases. The twofold aversive affect appears (...) for three distinct groups of students; we demonstrate, however, that the same subjects overweight small win-probabilities in standard binary-choice. (shrink)

We study a first-price auction preceded by a negotiation stage with complete information, during which bidders may form a bidding ring. We prove that in the absence of externalities, the grand cartel forms in equilibrium, allowing ring members to gain the auctioned object for a minimal price. However, identity-dependent externalities may lead to the formation of small rings, as often observed in practice. Potential ring members may condition their participation on high transfer payments as a compensation for their expected (...) externalities if the ring forms. The cartel may therefore profitably exclude these bidders, although risking tougher competition in the auction. We also analyze ring efficiency in the presence of externalities, showing that a ring may prefer sending an inefficient member to the auction, if the efficient member exerts threatening externalities on bidders outside the ring, which in turn leads to a higher winning price. (shrink)

In this paper we suggest a model of sequential auctions with endogenous participation where each bidder conjectures about the number of participants at each round. Then, after learning his value, each bidder decides whether or not to participate in the auction. In the calculation of his expected value, each bidder uses his conjectures about the number of participants for each possible subgroup. In equilibrium, the conjectured probability is compatible with the probability of staying in the auction. In our (...) model, players face participation costs, bidders may buy as many objects as they wish and they are allowed to drop out at any round. Bidders can drop out at any time, but they cannot come back to the auction. In particular we can determine the number of participants and expected prices in equilibrium. We show that for any bidding strategy, there exists such a probability of staying in the auction. For the case of stochastically independent objects, we show that in equilibrium every bidder who decides to continue submits a bid that is equal to his value at each round. When objects are stochastically identical, we are able to show that expected prices are decreasing. (shrink)

The increasing number of companies providing internet services and auction tools helped popularize the online reverse auction trend for purchasing commodities and services in the last decade. As a result, a number of owners, both public and private, accepted the online reverse auctions as the bidding technique for their construction projects. Owners, while trying to minimize their costs for construction projects, are also required to address their ethical responsibilities to the shareholders. In the case of online reverse auctions (...) for construction projects, the ethical issues involved in the bidding technique directly reflects on the owner’s ethical and social responsibilities to their shareholders. The goal of this paper is to identify the shareholder ethics and responsibilities in online reverse auctions for construction projects by analyzing the ethical issues for the parties involved in the process. The identification of the ethical issues and responsibilities requires clear definition and understanding of professional ethics and the roles of the involved parties. In this paper, first, the concept of professional ethics and social responsibility is described in a general form. To illustrate the ethical issues and responsibilities, a sample case of bidding for a construction project using online reverse auction techniques is presented in which the shareholders were actively involved in questioning the ethical issues. The issues involved in the bidding process and their reflection on the shareholder responsibilities are described and analyzed for each stage of the process. A brief discussion of the overall process is also included to address the general ethical issues involved in online reverse auctions. (shrink)

Spirited disagreement exists among online auction participants over the ethics of sniping: delaying one's bid until the closing seconds of an online auction. Through analysis of the structural features of online auctions and by deploying Rawls's (1955) distinction between justifying an action under a practice and justifying the practice itself, I argue that: (i) the disagreement is better conceived as one over the ethics of online auction hosting (and therefore, over business ethics) than over the ethics of (...) online auction participation; (ii) so conceived, the argument against sniping is nonetheless implausible; and (iii) the disagreement remains interesting not on the merits, but for the curious fact that it is bidders who complain about sniping. (shrink)

Recommending the identity of bidders in public procurement auctions has a significant impact in many areas of public procurement, but it has not yet been studied in depth. A bidders recommender would be a very beneficial tool because a supplier can search appropriate tenders and, vice versa, a public procurement agency can discover automatically unknown companies which are suitable for its tender. This paper develops a pioneering algorithm to recommend potential bidders using a machine learning method, particularly a random forest (...) classifier. The bidders recommender is described theoretically, so it can be implemented or adapted to any particular situation. It has been successfully validated with a case study: an actual Spanish tender dataset which has 102,087 tenders from 2014 to 2020 and a company dataset which has 1,353,213 Spanish companies. Quantitative, graphical, and statistical descriptions of both datasets are presented. The results of the case study were satisfactory: the winning bidding company is within the recommended companies group, from 24% to 38% of the tenders, according to different test conditions and scenarios. (shrink)

This paper traces Alasdair MacIntyre’s account of the development of the Greek polis as presented in A Short History of Ethics, After Virtue, and Whose Justice? Which Rationality?. The paper argues for the centrality of Aristotle’s conception of po- litics as an architectonic art to this account. It explores the foundations of MacIntyre’s presentation of moral rationality in Homer and offers the poems of Hesiod as an aid to understanding MacIntyre’s view of the post-Homeric crisis in Greek ethics. Aristotle is (...) then invoked to show how MacIntyre represents the polis as a classical response to that crisis. (shrink)

Background and Aims The prevalence of religious faith among doctors and its relationship with decision-making in end-of-life care is not well documented. The impact of ethnic differences on this is also poorly understood. This study compares ethnicity and religious faith in the medical and general UK populations, and reports on their associations with ethically controversial decisions taken when providing care to dying patients. Method A postal survey of 3733 UK medical practitioners, of whom 2923 reported on the care of their (...) last patient who died. Findings Specialists in care of the elderly were somewhat more likely to be Hindu or Muslim than other doctors; palliative care specialists were somewhat more likely to be Christian, religious and ‘white’ than others. Ethnicity was largely unrelated to rates of reporting ethically controversial decisions. Independently of speciality, doctors who described themselves as non-religious were more likely than others to report having given continuous deep sedation until death, having taken decisions they expected or partly intended to end life, and to have discussed these decisions with patients judged to have the capacity to participate in discussions. Speciality was independently related to wide variations in the reporting of decisions taken with some intent to end life, with doctors in ‘other hospital’ specialities being almost 10 times as likely to report this when compared with palliative medicine specialists, regardless of religious faith. Conclusions Greater acknowledgement of the relationship of doctors' values with clinical decision-making is advocated. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:216 Feminist Studies 46, no. 1. © 2020 by Feminist Studies, Inc. Sealing Cheng Pikachu’s Tears: Children’s Perspectives on Violence in Hong Kong How do children experience the sudden onset of massive unrest, violence, and police brutality? It has been difficult even for many adults to process how Hong Kong—a cosmopolitan city known for its stability and low crime rate—descended overnight, on June 12, 2019, into tear gas and (...) violent confrontations. What began as a mass protest against amendments to a bill that would have facilitated the extradition of fugitives in Hong Kong to mainland China for trial turned into a protracted struggle for universal suffrage and investigations into police brutality. In the process, countless scenes of excessive police violence against protestors have challenged any dichotomous, black-and-white worldview of good cop/bad criminal; the geography and tempo of the city have been remade by protests, crackdowns, and transportation shutdowns; and social and familial tensions and divisions about the source of the violence have plagued the routines of everyday life. Children, like adults, have to find new ways of being and becoming in the city during this political upheaval. Their existential liminality, however, provides children with a unique perspective from which to sense, experience, and engage with the volatility around them. Careful listening allows children’s “small voices” to speak to “big issues.”1 1. Allison James, “Giving Voice to Children’s Voices: Practices and Problems, Pitfalls and Potentials,” American Anthropologist 109, no. 2 (2007): 261–72. Sealing Cheng 217 Unmooring children from “the restrictive and constricting frameworks of innocence and/or victimhood” with “incomplete moral and social personhood,” Karen Lury analyzed the child as a version of Berlant’s “infantile citizen,” whose “‘stubborn naïveté’ gives her/him enormous power to unsettle, expose, and reframe the machinery of national life.”2 I offer reflections below as an observer of the ways my children participate in their changing world as socio-moral beings. I write as a mother who searches for her own ethical anchor with and through my children in a collective project of engaging with our fears, hopes, and possibilities. “Will the Government Talk to Us?” I am a mother of two girls, ages six and nine. My daughters usually want to go swimming on Sundays, but since June 9, 2019, our family has instead spent many Sundays at marches and protests against the anti-extradition law and police brutality, reiterating the “five demands” of the movement. Our family has participated in protest marches before, but the prospect of walking in a crowd through the city streets for hours in the summer heat—rather than swimming in the pool—was highly unappealing to my kids. I had to explain to them why it was important. I said that if amendments to the Extradition Law passed, we could be accused of committing a crime under mainland Chinese laws, and we would lose our rights to do many of the things we had taken for granted. As an example, I explained that they would not be allowed to watch Winnie the Pooh again because President Xi did not like that people likened him to the cute bear. My daughters found it puzzling why anyone would object to such an innocuous comparison. I also said that if the law passed, we might no longer be free to say the words “8964” commemorating the June 4, 1989, Massacre on Tiananmen Square. (While these changes might not really happen, they speak to Hongkongers’ utter distrust of the judicial system in China.) I explained to my daughters that we needed to tell Chief Executive Carrie Lam and her government that we did not want this law passed. They agreed. 2. Karen Lury, “Children in an Open World: Mobility as Ontology in New Iranian and Turkish Cinema,” Feminist Theory 11, no. 3 (2010): 284; Lauren Berlant, The Queen of America Goes to Washington City: Essays of Sex and Citizenship (Durham, NC: Duke University Press, 1997), 29, quoted in Lury, “Children in an Open World,” 284–5. 218 Sealing Cheng When we joined our first anti-extradition march toward the government headquarters on June 9, we were among one million people who... (shrink)

The sexually violated woman has become a salient symbol in feminist discourse, government policies, the media and transnational activism at this historical juncture. In this article, I seek to understand the conviction of anti-prostitution activists that all women in prostitution are victims (despite evidence to the contrary), and their simultaneous dismissal or condemnation of those women who identify as sex workers. The analysis identifies the centrality of victimhood to the affective logic of women activist leaders in the anti-prostitution movement, and (...) its embeddedness in discourses of suffering and redemption in Korean nationalist historiography. Sexual victimhood thus acquires the power to incite moral outrage, compel consensus and inhibit dissent. Sex workers further come to bear the historical and political burden of righting all that is wrong with the nation, making their elimination essential for the nation’s rescue. Critiques of capitalism and the state become footnotes and silences in this process. In effect, the victimhood of ‘prostituted women’ allows women activists to circulate effectively in the affective economy of the nation as well as in the global anti-trafficking campaign. The passionate activism of anti-prostitution women activists may say less about the state of prostitution than about the activists’ subjectivity as historical and global subjects, and the symbolic world that they locate themselves in. (shrink)

Drawing on the author's experience in devising a localized version of The Vagina Monologues in Hong Kong, this paper critically appraises the ‘global vaginahood’ in the globalization of The Vagina Monologues and the V-Day movement that reproduces a core-periphery relationship in the transnational women's movement. As a theatrical performance and a worldwide movement, these productions are remarkable for the manner in which they raise awareness about women's sexuality and violence against women in different parts of the world. Critical questions, however, (...) remain on the rhetoric of universalism and the ethnocentric methods of the global campaign, with US women's experiences and agenda defining those of women in other parts of the world. As a worldwide campaign, the V-Day movement reproduces a hierarchical model between the global North and South, with an emphasis on Western leadership rather than coalition between partners with different experiences, priorities, and strategies. The paper argues that feminists may develop more effective coalitions with local women by recognizing and identifying locally derived creative efforts to respond to issues that are pertinent to their lives. As such, the paper is a push for dialogues in the V-Day campaign and transnational women's movement in general. (shrink)

This comparative case analysis contrasts two nations – Viet Nam and The United States of America (U.S.) – in terms of processes each employed and results each achieved in respective response to the COVID-19 pandemic. We use a general theory of teaching to contrast the countries in terms of their approaches to COVID public health education. Viet Nam followed the recommendations of the theory. The U.S. did not. While our analysis does not and cannot prove educational theory acted as the (...) sole causal factor in realization of the disparate results in the countries, our case study does illustrate that the different approaches to public health education used by the countries may be counted among factors contributing to wide differences in the contrasting cases. The argument proceeds by 1) describing differences in relevant statistics between Viet Nam and the U.S., 2) outlining the theory of teaching we use to analyze differences in public health education in the two contexts, and 3) discussing successful implementation of the theory in Viet Nam and failure to implement in the U.S. Finally, we 4) dismiss competing explanations of differences between the countries and 5) offer considerations about how the U.S. may educate citizens away from turning the pandemic into a pan(en)demic. (shrink)

Commentators frequently point to the involvement of biomedicine and bio-science in the objectification and commodification of human body parts, and the consequent potential for violation of personal, social and community meanings. Through a study of UK media coverage of controversies associated with the removal of body parts and human materials from children, we argue that an exclusive emphasis on the role of medicine and the bio-sciences in the commodification of human materials ignores the important role played by commercially motivated mass (...) media organizations. Analysis of the language of news reports covering the period of the organ retention controversies in the UK reveals the ways in which the mass media contribute to the commodification of body parts by recruiting them for use in the manufacture of a media scandal. This is achieved through use of horror language, the fetishization of certain body parts, emphasis on the fragmentation of the body, and the use of a variety of rhetorical devices to convey enormity and massive scale. Media participation in the commodification of children's body parts has profound implications for practices and policies in relation to use of body parts, and has significantly influenced the governmental regulation of science and medicine. The role of mass media deserves fuller recognition by theorists of body commodification. (shrink)

ABSTRACT:While the literature on psychedelic medicine emphasizes the importance of set and setting alongside the quality of subjective drug effects for therapeutic efficacy, few scholars have explored the therapeutic frameworks that are used alongside psychedelics in the lab or in the clinic. Based on a narrative analysis of the treatment manual and post-session experience reports from a pilot study of psilocybin-assisted treatment for tobacco smoking cessation, this article examines how therapeutic frameworks interact with the psychedelic substance in ways that can (...) rapidly reshape participants' identity and sense of self. We identified multiple domains relating to identity shift that appear to serve as smoking cessation mechanisms during psilocybin sessions, each of which had an identifiable presence in the manualized treatment. As psychedelic medicine becomes mainstream, consensual and evidence-based approaches to psychedelic-assisted identity shift that respect patient autonomy and encourage empowerment should become areas of focus in the emergent field of psychedelic bioethics. (shrink)

An ascending-bid auction protocol with a fixed end time has been widely used in many Internet auction sites. In such auctions, we can observe bidders’ behavior called last minute bidding, namely, a large fraction of bids are submitted in the closing seconds of the auction. This may cause a problem of information revelation failure as well as a problem of the server’s overload and network congestion. If almost all bids are submitted only during the last minute, each (...) bidder cannot obtain information about the good through others’ bidding behavior, which will spoil the advantage of open-bid auctions. This results in having an inefficient allocation of the good. To solve this problem, we propose a new protocol that gives bidders an incentive to fix the maximum bid of a proxy agent. We examine the property of the protocol by using game theory and clarify which situations our protocol outperforms the existing protocol by using a computer simulation. (shrink)

Democracy, tolerance, fairness, trust, respect, conversation, self, society, individualism, collectivism, autonomy - these are the things that youth workers talk about. But, do they agree with each other on what these all mean? Or, should it matter? It is in the conversations that youth workers have with each other, and the meanings used to help young people in their lives that define these practitioners. But, if they are not precise in their arguments and do not begin questioning the assumptions behind (...) their ideas and language, youth workers risk leaving young people unable to reason, and - as a result - in danger of being taken in by rhetoric, slogans, false promises, and propaganda. This book shows how youth workers can explore the assumptions behind their work. It raises questions about the values they should hold in relating to each other, the nature of these relationships, and what it is to be a person in society. The book will help workers at all levels, encouraging a diversity of philosophical outlook and helping to understand the tensions that do arise in youth work. (shrink)

Cornelius Nepos’ Life of Atticus shows its author as living a life of deliberate withdrawal from politics. This paper compares that life to other models of political withdrawal in Greco-Roman thought and finds that it does not cohere very closely with any of them. Nepos, the paper proposes, deviates from these existing models in showing Atticus as avoiding politics not out of a desire to transcend human life, to reorder politics, or to create a substitute politics of his own, but (...) rather to live what the paper calls ‘social life.’ Atticus embraces human interdependence while rejecting the civic forms in which that interdependence was traditionally expressed in Greece and Rome. (shrink)