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Auctions — A Brief Introduction

Economics Sneak Peak

  • Clearing rules: Who gets what and how much do they need to pay?
  • Information rules: What is known about the auction and especially the auctioned resource?

Auction types and the winner’s curse

The following are the most frequently used auctions:

Source: Jehle, G.A. and P.J. Reny, Advanced Microeconomic Theory, 3rd ed., Prentice Hall

Second price auctions: incentive compatible and strategy proof

Second price auctions have two very strong advantages:

  • Strategy proof: agents have an incentive to show their true valuation.

About Fractal Protocol

Built on Polkadot, Fractal Protocol is an open-source, zero-margin protocol that defines a basic standard to exchange user information in a fair and open way, ensuring a high-quality version of the free internet. In its first version, it is designed to replace the ad cookie and give users back control over their data.

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