Auction theory is a branch of economics and game theory that studies how different auction designs and strategies affect the outcomes of bidding processes. It involves the analysis of various types of auctions, bidder behavior, and the allocation of goods or services through competitive bidding. Key concepts in auction theory include: 1. **Types of Auctions**: - **English Auction**: An ascending-bid auction where participants publicly bid against one another until no higher bids are made.
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