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Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Perhaps the most familiar auction mechanism is the [...] in which an auctioneer is selling a single item in a face-to-face arena where potential buyers openly reveal their willingness to buy the good at prices that are called out by an auctioneer. The auctioneer begins at a low price and easily elicits nods from buyers.
Answer
ascending price auction

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Perhaps the most familiar auction mechanism is the [...] in which an auctioneer is selling a single item in a face-to-face arena where potential buyers openly reveal their willingness to buy the good at prices that are called out by an auctioneer. The auctioneer begins at a low price and easily elicits nods from buyers.
Answer
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
Perhaps the most familiar auction mechanism is the [...] in which an auctioneer is selling a single item in a face-to-face arena where potential buyers openly reveal their willingness to buy the good at prices that are called out by an auctioneer. The auctioneer begins at a low price and easily elicits nods from buyers.
Answer
ascending price auction
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Perhaps the most familiar auction mechanism is the ascending price auction in which an auctioneer is selling a single item in a face-to-face arena where potential buyers openly reveal their willingness to buy the good at prices that are called out by an auctio

Original toplevel document

3.8. Auctions as a Way to Find Equilibrium Price
o determine the ultimate buyer. These mechanisms include the ascending price (or English) auction, the first price sealed bid auction, the second price sealed bid (or Vickery) auction, and the descending price (or Dutch) auction. <span>Perhaps the most familiar auction mechanism is the ascending price auction in which an auctioneer is selling a single item in a face-to-face arena where potential buyers openly reveal their willingness to buy the good at prices that are called out by an auctioneer. The auctioneer begins at a low price and easily elicits nods from buyers. He then raises the price incrementally. In a common value auction, buyers can sometimes learn something about the true value of the item being auctioned from observing other bidders. Ul

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