Tarek Amr

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So the seller in a first-price auction receives the amount of the highest bid, which is, however, less than the true value of the highest bidder. By comparison, in a second-price auction, the seller receives only the second-highest bid, but the bids are higher. That is, when the rules of the auction change, the bids change, too. In fact, there are reasons to think that these two effects balance out.
Who Gets What - And Why: The Hidden World of Matchmaking and Market Design
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