Reexamine First Price Sealed Bid Auctions with the One-Shot Decision Theory
In this paper, we examine first price sealed bid auctions with the one-shot decision theory. We set a fundamentally
different hypothesis from the existing approaches for analyzing first price sealed bid auctions. We emphasize that for every
bidder he/she faces a one-shot decision problem in which each bidder makes a decision based on some particular scenario.
With the one-shot decision theory, we build the first price sealed bid auction models. The first price sealed bid auction has been
proved to be reasonable from the expected utility theory. Our analytical results highlight that it is also reasonable from the
one-shot decision theory.
Keywords: First price sealed bid auctions One-shot decision theory Regret