The Research On Multi-unitauction Theory In The Selection Of Bond's Auction

Auction is considered to be one of the most efficient method in discoverring price, the study of auction is also an important area of normative industrial economics. Comparing to the rich achievement in one-unit auction, there are too much disputes in multi-unit auction both in theory and in empirical, especially in ways of multi-unit auction. There is no definitive conclusion about which one is better than another one between uniform-price auction and discriminatory auction. But selecting a right auction method is very important to auctioner if he want to increase earnings. So it is necessary to study and compare this two methods.Bond's auction is a kind of typical multi-unit auction, it is also the world's largest auction market. Governments issue a large number of bonds every year and companies often raise money by issuing bonds. The huge circulation makes a small difference in issue price bring a big difference in capital cost of auctioner. This paper start from classic model of aution,compares uniform-price auction and discriminatory auction based on the auction of our financial bonds. This paper does a systemic study on this two main multi-unit auction method by normative analysis, empirical analysis and comparative analysis and so on. Empirical studies have shown that discriminatory auction is better than uniform-price auction Either from the perspective of risk, or from the perspective of active bidders. Discriminatory auction can increase earnings of auctioner.This paper consists of 5 parts as follows: The first part is the introduction part. Introduce the background and significance of this paper. Make a summary about the research at home and abroad, and then make a brief comment on these researches. The second part is the theory and model on multi-unit auction. First, this part introduce the theory and benchmark of one-unit auction, and then discussing the theory and model on multi-unit auction by relaxing assumptions. The third part is the status of bond auction and international comparisons. This part intriduce the features of bond auction, the status of our bond auction and the historical evolution of issuing ways. At last make a international comparisons. The forth part is the Empirical Comparison of multi-unit auction. This part make the financial bonds auction as samle, designing three indicators to compare uniform-price auction and discriminatory auction, and then make a conclution. The fifth part is conclusions and suggestion.