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Enron Mail |
Chonawee,
This was perfectly all right. As a matter of fact I expect and encourage the members of the group to disagree with me (or anybody else) on any subject. I am never offended by it and take it as a manifestation of ability to think independently and having the courage of one' s convictions. Nobody has the monopoly on truth and nobody knows everything. The only way we can learn and avoid costly errors (to ourselves and the company) is by having open communication. In Enron, facts are friendly. By the way, it was an excellent presentation. Vince Chonawee Supatgiat@ENRON 01/04/2001 03:10 PM To: Vince J Kaminski/HOU/ECT@ECT cc: Subject: Sorry. Hi Vince, I am sorry for correcting on the revenue of the different auctions. Vickrey 1961 showed that all 4 kinds of auctions would yield the same expected revenue to the auctioneer. (Dutch, English, first price-sealed bid, and second-price sealed bid.) In fact, the selling price is equal to the valuation of the second highest bidder. For example, in Vickrey auction, everyone bids at his own valuation. Hence, the winner pays the valuation of the second highest bidder. In English auction, the second highest valuation bidder will stop competing if the price is above his valuation. Hence, the winner also gets the item at the price of the second highest valuation bidder. Thank you for attending the meeting and giving many helpful contributions. -chonawee
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