February 4, 2005
All rights reserved to Shmuel Oren, UC Berkeley
PSERC
Simultaneous Auction
Minimum Social Cost Selection
200
500
700
600
Regulation
15
10
20
 5
Spin
Settlement Rule    Procurement Cost ($)
pRG = 15
pSP = 20
Highest Accepted Bid   16,500
pRG = 20
Marginal Value        20,000
Pay as Bid        10,500 (Soc. Cost)
dSP=500
dRG=500
Misrepresent quality
Misrepresent cost
Incentive compatible