Auction design refers to the strategic process of creating rules and formats for auctions that determine how goods or services are sold, aiming to maximize efficiency and revenue. The design encompasses various elements like bidding processes, auction types, and participant incentives, all of which impact the behavior of bidders and the overall outcome. Good auction design is essential for aligning interests between sellers and buyers, leading to fair competition and optimal resource allocation.
congrats on reading the definition of Auction Design. now let's actually learn it.