Session 10

Question 1

Why Electronic Auctions?

Answer 1

• Determine the value of the product/service when valuations in the market are heterogeneous.
• Reduce search costs for the best transaction partner.
• Increase the procurement reach.

Question 2

What goods are sell via auctions?

Answer 2

Buy and sell goods that are inherently hard to price!

• Art, Antiques, Collectibles.
• Natural Resources, Precious Materials.
• Financial assets, IPOs, Cryptocurrencies.
• Emissions, Radio Frequencies.

Question 3

Models of (electronic) markets

Answer 3

1. Bilateral Negotiation
2. Sales Auctions
3. Reverse Auctions
4. Double Auctions

Question 4

Sales auction types

Answer 4

1. English auctions
2. Dutch auctions
3. Sealed Bid Auction

Question 5

Sealed Bid Auction types

Answer 5

1. First Price Sealed Bid
2. Second Price Sealed Bid (Vickrey)
3. Generalized Second Price Auction (Google Search)

Question 6

Moral philosophy

Answer 6

is a branch of philosophy that defines what is right and wrong

Question 7

Applied ethics focuses on…

Answer 7

the concrete moral problems in different fields

Question 8

How do we recognize a moral dilemma?

Answer 8

1) the agent is required to do each of two (or more) actions
2) the agent can do each of the action; but
3) the agent cannot do both (or all) of the actions

Question 9

Ethical concerns of algorithms:

Answer 9

• Unjustified action
• Misguided evidence: bias
• Unfair outcomes: discrimination
• Lack of transparancy: opacity
• Transformative effects: autonomy & privacy
• Limited traceability: moral responsible

Question 10

XAI

Answer 10

Explainable AI - XAI

Question 11

LIME

Answer 11

Local
Interpretable
Model agnostic
Explanation