A Walrasian auction, introduced by Léon Walras, is a type of simultaneous auction where each agent calculates its demand for the good at every possible price and submits this to an auctioneer. The price is then set so that the total demand across all agents equals the total amount of the good. Thus, a Walrasian auction perfectly matches the supply and the demand.
Walras suggested that equilibrium would always be achieved through a process of tâtonnement (French for "trial and error"), a form of hill climbing.[1] More recently, however, the Sonnenschein–Mantel–Debreu theorem proved that such a process would not necessarily reach a unique and stable equilibrium, even if the market is populated with perfectly rational agents.[2]
^Wurman 1999, p. 85.
^Ackerman 2002, pp. 122–123, "In Walrasian general equilibrium, prices are adjusted through a tâtonnement ('groping') process: the rate of change for any commodity’s price is proportional to the excess demand for the commodity, and no trades take place until equilibrium prices have been reached. This may not be realistic, but it is mathematically tractable: it makes price movements for each commodity depend only on information about that commodity. Unfortunately, as the SMD theorem shows, tâtonnement does not reliably lead to convergence to equilibrium."
A Walrasianauction, introduced by Léon Walras, is a type of simultaneous auction where each agent calculates its demand for the good at every possible...
A double auction is a combination of both forward and reverse auctions. A Walrasianauction or Walrasian tâtonnement is a double auction in which the...
price changes (for a specific type of price adjustment process see Walrasianauction). Consequently, some researchers have focused on plausible adjustment...
A Vickrey auction or sealed-bid second-price auction (SBSPA) is a type of sealed-bid auction. Bidders submit written bids without knowing the bid of the...
Competitive equilibrium (also called: Walrasian equilibrium) is a concept of economic equilibrium, introduced by Kenneth Arrow and Gérard Debreu in 1951...
example of a double auction is stock exchange. As well as their direct interest, double auctions are reminiscent of Walrasianauction and have been used...
stocks, which are traded daily and are identical (thus a centralized Walrasianauction like a stock exchange is unrealistic). The location also plays a key...
(2013). "Ascending auctions and Walrasian equilibrium". arXiv:1301.1153 [cs.GT]. Mierendorff, Konrad (2013). "The Dynamic Vickrey Auction". Games and Economic...
A Dutch auction is one of several similar types of auctions for buying or selling goods. Most commonly, it means an auction in which the auctioneer begins...
Auction theory is an applied branch of economics which deals with how bidders act in auctions and researches how the features of auctions incentivise...
A reverse auction (also known as buyer-determined auction or procurement auction) is a type of auction in which the traditional roles of buyer and seller...
An online auction (also electronic auction, e-auction, virtual auction, or eAuction) is an auction held over the internet and accessed by internet connected...
of tâtonnement to achieve optimality. See also Hill climbing and Walrasianauction. Unified models of human biases: Neoclassical economics has concentrated...
In common value auctions the value of the item for sale is identical amongst bidders, but bidders have different information about the item's value. This...
The term "auction algorithm" applies to several variations of a combinatorial optimization algorithm which solves assignment problems, and network optimization...
A Calcutta auction is an open auction held in conjunction with a golf tournament, horse race or similar contest with multiple entrants. It is popular in...
A government auction or a public auction is an auction held on behalf of a government in which the property to be auctioned is either property owned by...
Auto auctions are a method of selling vehicles based on an auction system. Auto auctions can be found in most countries and are usually exclusive to licensed...
A Japanese auction (also called ascending clock auction) is a dynamic auction format. It proceeds in the following way. An initial price is displayed....
A sponsored search auction (SSA), also known as a keyword auction, is an indispensable part of the business model of modern web hosts. It refers to results...
Auction sniping (also called bid sniping) is the practice, in a timed online auction, of placing a bid likely to exceed the current highest bid (which...
A virginity auction is an auction, often publicized online, where a person seeks to sell their virginity. The winning bidder will win the right to be...
multiunit auction is an auction in which several homogeneous items are sold. The units can be sold each at the same price (a uniform price auction) or at...