On-line auctions and name-your-price innovations are becoming increasingly popular. Using the probability distribution of buyers' willingness-to-pay, these exercises ask students to compare the potential revenue from traditional, posted, fixed-price auctions; name-your-price auctions; English, ascending, open-outcry auctions; and sealed-bid auctions. Students must determine an appropriate fixed price. A simulation model using @Risk or Crystal Ball can be used to make the comparisons. Rules about when to use each sales mechanism and some characteristics of auctions are developed along the way.
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