you have two possible values va and vb generated from this script with your NetID.
your utility is value minus payment if you win, zero otherwise.
You can find the value and bid data from this exercise in bid_data.csv. It includes your values and bids and your opponents’ values and bids. Complete the following parts and prepare a project report according to the Project Report Guidelines.
Submit your project reports on canvas. Do not include your names on your submission. For group projects, you must join a Project Group before submitting.
Part 1: Evaluate Your Bid
In a first-price auction where there is a single opponent with a bid drawn uniformly at random from column “bid” in dataset bid_data.csv(remember to remove your own bids from the data):
Calculate your winning probability and expected utility with your bids submitted in Ex 1.2 based on va and vb respectively;
Calculate the optimal bid which maximizes your expected utility given the opponent’s bid based on va and vb respectively.
Compare the utility you obtained to the optimal utility you could have obtained. Can you conclude anything about a good strategy in this auction?
Part 2: Empirical Study of Bidding in the First-Price Auction
Come up with an interesting hypothesis about how bidders will bid in a first-price auctions. Evaluate your hypothesis on the data set. Discuss any conclusions you can make from your study.
If you are unsure of what is a good hypothesis, you can pull out a subset of the data (e.g., 50 bids) to explore visually (e.g., the scatter plot of value versus bid might be interesting), and then form a hypothesis that you can evaluate on the remaining bid data.
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This criterion is linked to a Learning OutcomeNovelty_3756
The open-ended part of the project was creative and its conclusions (even if negative) allow for new understanding of topics in the space of the project.
This criterion is linked to a Learning OutcomeWriting Quality_6682
The project report is well written. The structure roughly follows the recommended structure (with deviations that improve flow and readability). It is easy to understand what was done and what the conclusions are.
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