Auction First-Price Shading

Table of Contents

• Example
• Workflow
• Common Patterns
• Guardrails
• Quick Reference

Example

Scenario: Domain-neutral sealed-bid auction. A bidder must submit a blind bid for an item whose private value to them is 28 units of budget currency. Six other bidders are expected to compete. Values across bidders look roughly uniform. The bidder is mildly risk-averse (0.2) and has 89 units of budget remaining.

Inputs:

• true_value = 28
• n_bidders_estimate = 6
• value_distribution = "uniform"
• risk_aversion = 0.2
• budget_remaining = 89