Assignment Submission: Platform Economy Module

F-MI-578 - Introduction to Information Systems Research

Rohit Mattu
DP/11/21
MIS Group
Agent :*

GSP ( Generalized
Second Prize ) is not
in the dens that
•
we have seen
Clarke Groves
(Vickrey
-

CG
Prove that
-

have to
truthful
. Now we

Incentive mechanism
.

' '

is a truthful or

clans discussion
.

the
the values from
Taking : Bt, 132,133 respectively .

3 Bidders

.at?E%22Eqourespeetiuely
there are
Lets ( ) :

say value per

click is
10¥
& there & 180
rate is 200
dirk
& S2 & the
ss
Thru are 2 slots
 total value
.

Biprexut8o
Accorduigloivcb
: Bz
Bz

Each Agent
amount an ¥igÉ 1160
pays
cost that it imposes
equalto the 800

oltuv
agents
.
.

on

1160-800
51--200 B, (Absent )
- B, / Print) ⇐

10%,

44¥
Bi =

52=1*0 Amount = 360

Bz
paid by Bi
=
.

In he/she is truthful
)
133=2
( if
'

value - Price
of B ,
=

Net utility 360

=
2000 -

a 1640
 total
Now Let's
suppose , he/she lied .

value

3%4 B3 I
200
B, = SF

4 Fein 52=180 B*(Absent) 800

360
1160
Bz =

Bz = £ Flik
, 800 0 800
B) (Present)

BB,(Present) 1160-800
Bilttbsurtd -
=

= 360

total Total
Amat
-

of
Netutility lied
Bi = value
paid
when he
)
(
,
360
10×180 -

1-44.0
-

=
 decreased when he lied from
Therefore utility of
met B, have

1640 to 1440 .

Hence Proved .
*

I.
- -

A
"

the total revenue 4 price/aiµ paid

We have
"
evaluated
GSP Auction
-

bidders in
by different for veg
have to find the same .

value we
the same
taking
 "
Tata
FIB! Bz 133

Dejan
:
value

7200
B1 6000 . 1200

5, =
500 (Absent )

Sz = 200
B1 2h00
Lltoo 0
220
B, =
( presort)
12
Bz =

133=6
(present
7200 -2kW
Cttbsent B
-_

B, -
,

Amount paid by
=
4800

B1 .

(Ri )
 For B2

therefore Revenue earned '

B, B} tatdue
the Auction Platform
by Bz 1000° 1200 11200
R2 Absent ,
-2 Ri
= Ri 1-

ti
= 48001-1200 Bz °
10000 10000
( presort)
total = 6000 .

Revenue
.

-
1200
Bpfpvosurt) =

4%9=9 -627µm Bz Absent)

-

Price per clicks =

.

Bi
by Amount Paid 1200 -

%
=
6
Price per dirk =
120¥ =
clerk .

by Bz
by Bz (R☒)
 made and
Revenue earned #augments ,

quantities
,
All the the case
have
evaluated in
same as we
are
dich
Pere per

of GSP .

(
Assignments 2 Bidders
B ,Bz)
of
:
considered tho case ,

-
we have

that total Revenue

& 2 Blots (4/52) and
found
is I 180 .

527am and Reservation 0.50--2

Bi
.

= =

with 51=100 Price

)
,

Sz
= 80 Bz =
571µm .
 other bidder
Show ltiat how revenue will increase
if any
joins .

€
Bs York
say
=

slot .

for taking
guaranteed
. no

value =D

0
Amount paid -

For 52 (1)
Netutility=0-
-
.

5×80
guarantied
=

value
5×80
Amount pard
=

-
0 for agents
Net
utility =
• be
from :C) indifferent .
 the Amount paid 5×80
Therefore
=

= 400 . I

100*5
guaranteed
=

value
= 5×100

¥ .
:ii.÷; ←✗ v0

51 the Amount paid =

Therefore for =
500€

H#
900 E
= 500+400 =
 generated
720€
Therefore, the revenue increases
by i - e
400-1
i.
Wulff .

found out
by Equilibrium equation proposed by .

This can also be

Internet search] .

Hal R .
Varian [ the Economics of
dates that , for undersold page ,
which
Ns = 100

X-D nm 80
C- B) Ms
=
Nina

V =
0.50 Elaine
✓=
5 #click .

§
-

Ps) * 100 = (5-0.50)*80

class
validated
)
in

Ps=1•4%@ ( discussion
 oversold page
for
C- Ps) Nss = 0

( Assignment cased
✓ =
ps ps=5%@
with our

¢ verified solution]
previous

ENI .