Resumen de Private-value auction versus posted-price selling: : An agent-based model approach

Christopher N. Boyer, B. Wade Brorsen, James R. Fain

• An agent-based first-price private-value auction and an agent-based posted-price market are developed to compare these selling methods when buyers have private values. If the seller cannot impose a reserve price and has little uncertainty about the item's value, the seller's expected revenue is highest in the posted-price market. Otherwise, the seller is better off selling the item with the auction. Using a genetic algorithm and Monte Carlo integration solved the agent-based models quicker and provided more precise answers than solving models with particle swarm optimization and using the trapezoidal rule for numerical integration