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Auctions Example

The world of NFTs is perhaps the most visible part of the crypto ecosystem, and it is one where auction theory is on full display. We cover a number of topics within auction design, which has applications throughout the crypto ecosystem.

The world of NFTs is perhaps the most visible part of the crypto ecosystem, and it is one where auction theory is on full display. We cover a number of topics within auction design, which has applications throughout the crypto ecosystem.

Winner's curse -- the winner of an auction is the agent who pays the most, and as a result, ends up most likely paying more than the true price of the item

Auction types -- compare English auction, Dutch auction, etc, and prove revenue equivalence despite auction design.

Keynesian beauty contest - compare trades made when agents are making valuations based on what the median agent is likely to estimate. Has applications to startup valuations, and therefore DAOs and NFTs.