Sealed Bid Auctions

In these 2 variations on sealed bid auctions, students compete to maximize their surplus

First-Price Sealed Bid Auction: Independent Private Values
Students are randomly matched with other students in their class to play the role of competing bidders in an auction. Each student privately learns their valuation which is randomly selected from {1,2,…,100}. Students then submit bids. The student submitting the highest bid is declared the winner and receives a payoff equal to the student’s valuation minus the student’s bid.

First-Price Sealed Bid Auction: Common Value
Students are randomly matched with other students in their class to compete for an object of unknown value V which has been randomly selected from {10,11,…,90}. Students do not know V but each receives a private signal which is randomly selected from {V-10,V-9,…,V+10}. Students then submit their bids. The student submitting the highest bid is declared the winner and receives a payoff equal to the true value minus the student’s bid.