PSU Mark
Eberly College of Science Mathematics Department

Meeting Details

For more information about this meeting, contact Hope Shaffer, Chun Liu.

Title:Auction theory from an applied Math point of view
Seminar:CCMA Luncheon Seminar
Speaker:Nir Gavish, Technion – Israel Institute of Technology (Host: C Liu)
Auctions are typically related to electronic trading sites like Ebay or when auctions of art masterpieces hit the news. It is less commonly recognized that auctions are central to the backbone of economy with wide use in electricity markets, treasury auctions, foreign exchanges, mineral rights and more. For example, in 2014 the US Treasury used auctions to issue approximately $7 trillion in securities to finance the public dept of the US. Most of auction theory concerns the case where all bidders are symmetric (identical). This is not because bidders are believed to be symmetric, but rather because the analysis of asymmetric auctions is considerably harder. For example, in the case of the common first-price auction, the symmetric case is governed by a single ODE which is easy to solve explicitly. In contrast, the model for asymmetric first-price auction consists of n first-order nonlinearly coupled ODES with 2n boundary condition and an unknown location of the right boundary, where n is the number of bidders. This nonstandard boundary value problem is challenging to analyze, or even to solve numerically. Therefore, very little is known about its solutions. In this talk, I will review various approaches to this problem (perturbation analysis, dynamical systems, numerical methods), and in particular focus on the case of large asymmetric first-price auctions. Joint work with Gadi Fibich and Arieh Gavious

Room Reservation Information

Room Number:MB114
Date:03 / 02 / 2015
Time:12:20pm - 01:30pm