The linkage principle is a finding of auction theory. It states that auction houses have an incentive to pre-commit to revealing all available information about each lot, positive or negative. The linkage principle is seen in the art market with the tradition of auctioneers hiring art experts to examine each lot and pre-commit to provide a truthful estimate of its value.
The discovery of the linkage principle was most useful in determining optimal strategy for countries in the process of auctioning off drilling rights (as well as other natural resources, such as logging rights in Canada). An independent assessment of the land in question is now a standard feature of most auctions, even if the seller country may believe that the assessment is likely to lower the value of the land rather than confirm or raise a pre-existing valuation.
Failure to reveal information leads to the winning bidder incurring the discovery costs himself and lowering his maximum bid due to the expenses incurred in acquiring information. If he is not able to get an independent assessment, then his bids will take into account the possibility of downside risk. Both scenarios can be shown to lower the expected revenue of the seller. The expected sale price is raised by lowering these discovery costs of the winning bidder, and instead providing information to all bidders for free.
The linkageprinciple is a finding of auction theory. It states that auction houses have an incentive to pre-commit to revealing all available information...
In population genetics, linkage disequilibrium (LD) is a measure of non-random association between segments of DNA (alleles) at different positions on...
In kinematics, the parallel motion linkage is a six-bar mechanical linkage invented by the Scottish engineer James Watt in 1784 for the double-acting...
The Ackermann steering geometry is a geometric arrangement of linkages in the steering of a car or other vehicle designed to solve the problem of wheels...
linkage lead to the design of similar approximate straight-line linkages, such as Hoeken's linkage and Chebyshev's linkage. The Peaucellier linkage generates...
regional dimensions of constructive engagement, and particularly the linkageprinciple, are defended by some commentators, who argue that previous U.S. administrations...
g., the centroid linkage where the so-called reversals (inversions, departures from ultrametricity) may occur. The basic principle of divisive clustering...
Kwerel is known as the Linkageprinciple and was developed by Milgrom and Weber (1982). (Milgrom (2004) recasts the linkageprinciple as the 'publicity effect...
the value of the item to be less than they did. Additionally, the linkageprinciple allows revenue comparisons amongst a fairly general class of auctions...
In mechanics, virtual work arises in the application of the principle of least action to the study of forces and movement of a mechanical system. The...
γραφ- 'to write', from their original use for copying writing) is a mechanical linkage connected in a manner based on parallelograms so that the movement of one...
it is a process of becoming. Another summary, referring to its causal linkage to other actual entities, is that it is "all window", in contrast with...
acid, which is unstable, forms stable dimethyl sulfite ((CH3−O−)2S=O) In principle, a part of metal and metalloid alkoxides, of which many hundreds are known...
is related to the actual number of individuals in a population. Genetic linkage to other genes that are under selection can reduce the effective population...
The Vertical Dyad Linkage Theory is a theory that deals with the individual dyadic relationships formed between leaders and their subordinates. It is...
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