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Öresauktioner - Seriösa auktioner eller spännande bondfångeri?

Tufvesson, Olof and Volmer, Gina (2009)
Department of Economics
Abstract
This essay deals with a new kind of internet trading and/or gaming, where the interplay between the consumer and the producer is found to be a variation of the Dollar auction. The question is asked how this market should be viewed, which parties are involved as well as whether the market should be regulated or not. In order to gain an overview of the market, the market was compared to different established microeconomic theories with the Bayesian Nash game theory in focus. A statistical analysis of real-life data is made in order to gain an overview of the market. This type of market is found to create a negative consumer surplus compared to microeconomic theories. Also, the gaming theory aspect does not offer the consumer party the same... (More)
This essay deals with a new kind of internet trading and/or gaming, where the interplay between the consumer and the producer is found to be a variation of the Dollar auction. The question is asked how this market should be viewed, which parties are involved as well as whether the market should be regulated or not. In order to gain an overview of the market, the market was compared to different established microeconomic theories with the Bayesian Nash game theory in focus. A statistical analysis of real-life data is made in order to gain an overview of the market. This type of market is found to create a negative consumer surplus compared to microeconomic theories. Also, the gaming theory aspect does not offer the consumer party the same opportunities as it does the producer party. Thus, it is impossible to regard these auctions as fair gaming since the auction outcome show too big a variation. The analysis results show that this market can only be compared to the Bayesian Nash game theory, which makes it difficult to define rules and regulations for this type of market. Furthermore, this essay concludes that it should be made evident to the consumers that this type of market is better defined as gaming or lottery than a real auction. In conclusion, this type of market is not regarded as completely honest since the producers can take advantage of the situation and make a profit on profiteering on non informed consumers. (Less)
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@misc{1478544,
  abstract     = {This essay deals with a new kind of internet trading and/or gaming, where the interplay between the consumer and the producer is found to be a variation of the Dollar auction. The question is asked how this market should be viewed, which parties are involved as well as whether the market should be regulated or not. In order to gain an overview of the market, the market was compared to different established microeconomic theories with the Bayesian Nash game theory in focus. A statistical analysis of real-life data is made in order to gain an overview of the market. This type of market is found to create a negative consumer surplus compared to microeconomic theories. Also, the gaming theory aspect does not offer the consumer party the same opportunities as it does the producer party. Thus, it is impossible to regard these auctions as fair gaming since the auction outcome show too big a variation. The analysis results show that this market can only be compared to the Bayesian Nash game theory, which makes it difficult to define rules and regulations for this type of market. Furthermore, this essay concludes that it should be made evident to the consumers that this type of market is better defined as gaming or lottery than a real auction. In conclusion, this type of market is not regarded as completely honest since the producers can take advantage of the situation and make a profit on profiteering on non informed consumers.},
  author       = {Tufvesson, Olof and Volmer, Gina},
  keyword      = {spelteori,Consumer surplus,Öresauktion,Dollar auktion,konsumentöverskott,Penny auction,Dollar auction,game theory,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {swe},
  note         = {Student Paper},
  title        = {Öresauktioner - Seriösa auktioner eller spännande bondfångeri?},
  year         = {2009},
}