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JOURNALS // Upravlenie Bol'shimi Sistemami // Archive

UBS, 2014 Issue 50, Pages 110–142 (Mi ubs775)

Control in Social and Economic Systems

Reserve price efficiency and competitive pressure in auctions

V. Topinsky

Yandex LLC

Abstract: In this paper I analyze the reserve price efficacy of an auction, that is the relative value of the expected revenue increase induced by the optimal reserve price. I define the competitive pressure in an auction and the notion of one auction dominance over another auction in terms of competition level. After that I prove that the reserve price efficacy decays with respect to the increase of competition level. Finally I provide some examples of auction attributes, which monotonically affect the competition level.

Keywords: reserve price, revenue optimization, competition, competitive pressure, symmetric auctions, position auction.

UDC: 519.86 + 330.46
BBK: 65.012.1


 English version:
Automation and Remote Control, 2017, 78:1, 180–196

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© Steklov Math. Inst. of RAS, 2024