This summary is a preview edition for the first year course Economics for the Global Era of BSc International Business Administration VU Amsterdam.
This preview consists of chapter 17 and 19.
Economics for the Global Era
Preview version
Preview version for the course Economics for the Global Era – IBA Vrije Universiteit
Amsterdam.
Let me know what you guys think!
Overview
Part 1: Introduction to Economics .............................................................................................................................................. 1
Chapter 1. The Principles of economics ....................................................................................................................... 1
Chapter 2. Economic Methods and Economic Questions......................................................................................... 3
Chapter 3. Optimization ................................................................................................................................................. 4
Chapter 4. Demand, Supply, and Equilibrium ............................................................................................................. 5
Part 2: Foundation of Microeconomics ........................................................................................................................................ 7
Chapter 5. Consumers and Incentives .......................................................................................................................... 7
Chapter 6. Sellers and Incentives.................................................................................................................................10
Chapter 7. Perfect Competition and the Invisible Hand ..........................................................................................13
Chapter 8. Trade ............................................................................................................................................................14
Chapter 9. Externalities and Public Goods ................................................................................................................16
Chapter 10. The Government in the Economy: Taxation and Regulation ............................................................19
Chapter 11. Markets for Factor of Production ..........................................................................................................21
Part 3: Market Structure ........................................................................................................................................................23
Chapter 12. Monopoly ..................................................................................................................................................23
Part 4: Extending the Microeconomic Toolbox .........................................................................................................................24
Chapter 16. The Economics of Information .............................................................................................................24
Chapter 17. Auctions and Bargaining ........................................................................................................................... 2
Part 5: Introduction to Macroeconomics ...................................................................................................................................... 4
Chapter 19. The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates .................................4
Chapter 20. Aggregate Incomes ..................................................................................................................................32
Part 6: Long-Run Growth and Development ............................................................................................................................34
Chapter 21. Economic Growth ...................................................................................................................................34
Chapter 22. Why Isn’t the Whole World Developed? ..............................................................................................36
Part 7: Extending the Microeconomic Toolbox .........................................................................................................................38
Chapter 23. Employment and Unemployment ..........................................................................................................38
Part 8: Short-Run Fluctuations and Macroeconomic Policy .......................................................................................................40
Chapter 26. Short-Run Fluctuations ...........................................................................................................................40
Part 9: Macroeconomics in the Global Economy .......................................................................................................................42
Chapter 28. Macroeconomics and International Trade ............................................................................................43
, Chapter 17. Auctions and Bargaining
17.1 Auctions
Auction = a market process in which potential buyers bid on a good and the highest bidder
receives the good
Some goods don’t have well-established prices, making auctions a particularly useful method of selling that
encourages price discovery.
Types of auctions
Auctions can be split along two features:
1. How people place their bids
2. How price is determined
How bids are placed:
Open-outcry auction = bids are public. Auction in which bids are public and bidders compete
actively against each other
Sealed bid auction = auction in which bids are private, so that no bidder knows the bid of any
other participant
Four auction types:
1. Open outcry: English auction = (ascending price) auction in which the price increases
until there is only one standing bid and that bidder wins the item and pays his bid
- Dominant strategy: the winner will be the highest value bidder, and he or she
pays a price equal to the second-highest value (or slightly more if the second-
highest bidder bids his value exactly).
2. Open outcry: Dutch auction = (descending price) auction in which the price decreases
until a bidder stops the auction and that bidders wins and pays
number of competitors
- Strategy: willingness to pay x total number of bidders
3. Sealed bid: first-price auction = auction in which bidders privately submit bids at the
same time and the highest bidder wins and pays and amount equal to her/his bid
- Strategy: same as Dutch auction
4. Sealed bid: second-price auction = auction in which bidders privately submit bids at
the same time and the highest bidder wins and pays an amount equal to the second-
highest bid
- Dominant strategy: is to bid exactly your willingness to pay for the item
Open-Outcry Dutch Auctions - strategy
Open-Outcry English Auction - strategy
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper mrhbout. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €2,99. Je zit daarna nergens aan vast.
