February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PS
ERC
Sequential Auction
Regulation
15
10
20
5
Spin
200
500
700
600
Total Procurement Cost
= 500*10 + 500*20
= $15,000
Revealed Social Cost
= $10,500
d
SP
=500
d
RG
=500