Auctions Case Study
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ManagerialEconomicsCaseStudy.docxCase Study 1: Auctions
Due Week 7 - Worth 250 points
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 property value. Provide a recommendation for at least one other auction type which may better uncover the value of unique real estate properties.
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.
Your assignment must follow these formatting requirements:
Be typed, double spaced, using Times New Roman font (size 12) with one-inch margins on all sides; citations and references must follow APA format. Check with your professor for any additional instructions.
Include a cover page containing the title of the assignment, the student name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment length.
Acceptable Types of Publications
The definition of a high-quality professional business publication is one which is primarily a publication directed to reporting and/or analysis of the workings of a business. Examples are the Wall Street Journal, Bloomberg, Reuters etc. Avoid general news publications such as USA Today, Washington Post, NY Times.
PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANY TIME IN THIS COURSE.
Additional Information
Remember the keys to a case study, you are the protagonist, you are telling a story that advocates for something. In this case what you are to advocate for those cases where auctions present a tool for enhancing profits. So, we must first answer the question which auctions are best at uncovering value is which circumstances.
Question 1 is about compare and contrast a) English v Dutch actions, what are they, what are their strengths and weakness in discovering value; b) first price v Vickery, what are they, what are their strengths and weakness in discovering value. The video link included in the assignment will be a great help on this question. https://www.youtube.com/watch?v=4kWuxfVbIaU.
Question 2 is about a company Concierge which has come under a lawsuit for the way in which some of its auctions have been conducted, based on the research for question 1, what kind of auctions may be best for finding the value of unique high-priced properties. Question 2 is a case study where you can highlight how an auction can go wrong and you are to suggest how to improve the outcome with another type of auction
Question 3 say to identify and describe 3 examples of industries/markets in which auctions are used. We are search for examples other than real estate where auctions are used. You want to make sure you identify specific applications of auctions.
Questions 4 and 5 are asking you to demonstrate how an auction can improve revenue for the specific cases of non-profit organizations/government agencies and for for-profit enterprises
Remember the research is in the background. Avoid direct quotes. You, of course, must still cite your sources, but make the information your own in your own words. The research is in the background, you are the one explaining a policy position. You are the authority.
Things to avoid
The problem of similarity is a little different from the problem of plagiarism. A high similarity score can arise from a couple of sources. You can and must make an effort to control similarity. Here are a couple of quick tips.
Be original in your title and you heading for the subsections of the paper. Remember part of writing a case study is you present YOUR solution or advocacy as an expert. Make you title for the case study ANYTHING BUT Case Study One Auctions.
Do not repeat the questions asked in the assignment in your paper. Do not use the questions as the subsection titles. Make the original.
Above all make sure that you summarize any works used in your own words. High level of paraphrasing even if cited lack originality. We want to know your insights.
