The Bidder Marginal Revenue Solution And Research Based On Theory Of Mechanism Design In Auction Theory

Auction is the economic transaction form in the competitive market who can realize the efficient allocation of resources. Due to it can fully play the enthusiasms of the market that it plays more and more important role in modern economic field. So it’s essential to do some research about the formation of price mechanism and the allocation of resources for they are the core content in auction theory. There’s always a price due to the asymmetric information between bidder and seller which can expressed as marginal revenue.However this price can efficiently reflect the formation of price besides it can also be the basic tool of the other research, so this thesis took the marginal revenue as the tool to do some research about the auction theory. The significance of the thesis raised a new method and came up with a new idea for the auction theory research. On the one hand, this thesis raised a new method of solving marginal revenue on the mechanism design theory; on the other hand, this thesis made use of marginal revenue to prove some auction theory. Besides, this thesis induced the efficiency principle to verify the optimal auction mechanism.The first part was the introduction of the basic form of auction, the progress of the auction theory, the research method of auction theory, and the necessity of the article. Besides, the research thought and the technology roadmap of this thesis was put forward according to the current research methods.Secondly, this thesis built a model of marginal revenue and solved it based on the theory of mechanism design theory. Besides, this thesis also constructed the marginal revenue linear programming model under the circumstances that the auction house joining in the auction and charging commission. While this thesis applied the marginal revenue to prove the revenue equivalence theory and stated the optimal auction mechanism. The process of proving based on the idea of "the average price" which was different from the current research method.In the following part, the thesis introduced the essential principals to verify the optimal auction mechanism theory. The way of verifying was based on the whole system when it realized the maximum of the economic system, which considered both the seller and the buyer. So. it can efficiently test whether the system was the best in order to verify whether the auction mechanism was the best. At last, it’s always the auctioneers who design the selling regular and choose the pattern of the auction. While this thesis put forward a method called "the bidder efficiency" for the bidder to evaluate the different auction style. By calculating the bidder efficiency under the basic form of auction, the conclusions were the same which means "the bidder efficiency" has nothing to do with the form of auction. While comparing the bidder efficiency computed by the marginal revenue, we can get that the result was different from the bidder efficiency. This result comes to a conclusion that the bidder marginal revenue was just a price in theory, so we’d better consider more factors when using this result into the real auction environment.