Auction Market Design
The Research Area Comprises
- Optimal Bidding Behaviour Under Uncertainty
- Identification of Optimal Auction
The research area “Auction Market Design” focuses on the analysis and design of specific auction markets. Examples include the public sale of energy, government bonds and mobile radio frequencies. The research area’s goal is to identify optimal auction formats and to assess to what extent they can be implemented. Here it is particularly important to take into account the specific market environment and actual bidder behavior. In addition, auction market design requires considering the individual auction as part of a dynamic and changing environment. This permits an analysis of the long-term impact the design may have on incentives for innovation and on competition.