Over at Managerial Econ, Luke Froeb highlights a nice example of the winner’s curse. Like Google, Yahoo uses automated auctions to sell ads. One wrinkle is that some advertisers prefer to pay for impressions, some prefer to pay for clicks, and some prefer to pay only for resulting sales. Yahoo thus needs some mechanism to [...]
Archive for the ‘Auctions’ Category
Yahoo’s Self-Inflicted Winner’s Curse
Posted in Auctions, Internet, Microeconomics, Technology, tagged Auctions, Microeconomics, Yahoo on April 15, 2011 | Leave a Comment »
Capital One Warrants Bring in $146.5 Million
Posted in Auctions, Finance, tagged Auctions, Banks, TARP on December 4, 2009 | 2 Comments »
Yesterday the Treasury auctioned off its TARP warrants in Capital One. Treasury sold the warrants for $11.75 a piece, well above its $7.50 reserve price, but below some private estimates of $19.00 or more. I wouldn’t have gone as high as $19.00 myself, but I would have ended up a winner in the auction if [...]
TARP Warrants: Let the Bidding Begin
Posted in Auctions, Finance, tagged Auctions, Banks, TARP, Warrants on December 2, 2009 | 5 Comments »
Thursday is a nice milestone in TARP’s history: with the help of Deutsche Bank, Treasury is auctioning off the warrants it received when it invested in Capital One. The company has already paid off the preferred stock that the government purchased last fall, and will now be free from TARP oversight once the warrants are [...]
Positive, Normative, and … ?
Posted in Auctions, Economy, Teaching, tagged Auctions, Economics, Teaching on August 27, 2009 | 16 Comments »
Am I the only one who feels unfulfilled by the standard distinction between positive and normative economics? I am gearing up to return to the classroom next week, to teach microeconomics to incoming masters students at the Georgetown Public Policy Institute. Anyone who’s experienced the first day of micro class knows what’s coming. After introducing [...]
Big Money in Cap-and-Trade
Posted in Auctions, Budget, Energy, Environment, Politics, Regulation, tagged Auction, Budget, Cap and Trade, CBO, Climate Change, Politics, Regulation, Taxes on June 30, 2009 | 9 Comments »
On Friday, the House of Representatives passed its climate change bill by a slim margin. The bill’s key feature is a cap-and-trade system for greenhouse gases. That system would set national emission limits and would require affected emitters to own permits (called allowances) to cover their emissions. The number one thing you should know about this [...]
Progress on Auctioning TARP Warrants
Posted in Auctions, Finance, tagged Bank of America, Banks, Budget, Chrysler, Citigroup, GM, TARP, Warrants on June 26, 2009 | 3 Comments »
Ten major banks repaid almost $70 billion to TARP in recent weeks. But they aren’t free from TARP just yet: Treasury still owns warrants to purchase their common stock. I’ve previously argued that Treasury ought to auction these warrants to the highest bidder. Auctions would (a) be transparent, (b) provide full, fair value to taxpayers, [...]
Linkfest
Posted in Auctions, Budget, Finance, Health, Regulation, tagged Antitrust, Arbitrage, Auction, Budget, Citigroup, Google, Health, Regulation, Search, Stock Market, TARP, Venture Capital, Warrants on June 11, 2009 | 1 Comment »
Some good items elaborating on topics I’ve discussed in the past week: Paul Kedrosky says that the U.S. Venture Capital industry needs to shrink – by 50%. [my latest post on this] SubsidyScope presents some cool visualizations of the TARP money and other bailouts. (ht: Marcus Peacock in the comments) [latest post] Barrons analyzes the [...]
Auction the Warrants: Follow-Up
Posted in Auctions, Finance, tagged Auction, Banks, TARP, Warrants on June 1, 2009 | 9 Comments »
Summary: Readers had some excellent comments on last week’s post about auctioning the TARP warrants. Here are some updated thoughts. Last week I argued that the Treasury should auction off the warrants it received when it made TARP investments in banks. Specifically, when banks are ready to repay the TARP investment, Treasury should auction the [...]
The Politics of Auctions
Posted in Auctions, tagged Auction on June 1, 2009 | 3 Comments »
Over at Economic Principals, David Warsh has a nice post about how political considerations often limit the use of auctions in solving public policy challenges. In principle, auctions are a powerful tool for allocating public assets in an efficient and transparent manner. The FCC has had great success auctioning off portions of the radio spectrum, [...]
Google: Master of the Auction
Posted in Auctions, Internet, tagged Auction, Google, Search, Wired on May 27, 2009 | 4 Comments »
People usually think of eBay as the master auctioneer of the internet age. As this month’s Wired points out, however, Google is the real master.
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