Economics written report essay
How to write an economics essay university
So, auctions held by government, and to be more specific properly designed actions directly influence the life of modern country. The main idea in each paragraph should be succinctly conveyed in the topic sentence, with the rest of the paragraph elaborating the topic sentence by giving details, examples, facts and statistics. Hence, there is no perfect auction design and they must be customized to suit different environments and targets. The reason for this was that there were 6 bidders competing for 12 blocks of spectrum and a very low reserve price one-eight of the reserve price in Germany. For example, a good auction design takes into account the information bidders have and the knowledge they have gained from previous auctions. That's where auction theory comes into play. You should not write everything that you know about a given content area. Lastly, auction design is not "one size fits all" and the failure of the government to design an auction that suited the country's environment lead to different revenues being earned. Both countries sold licenses in blocks, allowing "number of winners be determined by bidders". There was a big differential between revenues raised in each country with United Kingdom leading at euros per capita and Switzerland coming in last at 20 euros per capita. Her work can be found on various websites. Auction theory as a very useful brunch of game theory is of the great interest of modern economists. Another factor that made things even worse was the fact that that was an ascending auction. Discuss the purpose of the economics essay -- for example, your purpose might be to explain why it's important for a nation's government to take a specific action to improve its economy.
The same is true for professional writing. In addition, as Singapore imports a large amount of intermediate goods due to lack of factor endowments, the increase in imports of cheaper intermediate goods from China is also likely to be very beneficial to the Singapore economy as the cost of production in the economy is likely to fall substantially.
Any country that wants to increase revenues from auction must try to facilitate the competition among bidders by trying to make participation in auction as attractive as possible and eliminating any barriers for participation.
Few entrants decided to participate in the auction, since everybody was sure that 5 licenses will be distributed among market leaders.
They did not realize that having one more bidder than license does not assure that the outcome will be competitive. Example In the final analysis, the benefits of the growth of the Chinese economy to the Singapore economy are likely to outweigh the costs. The best way for government to sell available resources is to declare an auction.
Number of participants was sufficient to run profitable auction, but combination of officially permitted collusions and low reserve price resulted in absolutely insufficient revenues.
Restate your answer to the essay question So what? Revenues depend on how well the auction design is able to attract entry and prevent collusion. Italy generated euros per capita and attracted 6 participants.
Both this facts generated highly competitive auction environment and limited possible collusions. Strategy that United Kingdom had chosen was selling 5 licenses during classical ascending auction.
Economics written report essay
Dixit and S. They adopted the UK design but had the additional rule that if bidders did not exceed licenses, the number of licenses would be reduced. Example A Paragraph of the Body The growth of the Chinese economy may lead to a deterioration in the balance of payments of Singapore. Germany's auction design was very susceptible to collusion and deterring new entrants but they were lucky and managed to earn high revenues. Nowadays any business sector is more or less competitive, which requires all it's participants to be dynamic and creative. Additionally Austrian government set a very low reserve price. Furthermore, The Swiss government committed auction suicide when they permitted last-minute joint-bidding! The peculiarity of these auctions lies in the fact that revenues that were generated by European governments are different as a result of differently designed actions they held. This auction raised euros per capita.
It raised only 20 euros per capita in its ascending auction and this can be attributed to an unfeasible auction design, badly formulated rules and an absurdly low reserve price.
It does not give bidders a chance to collude and encourages weaker bidders to participate.
Economics essay topics
To discuss the principle of demand, you could discuss marketers who created demand for a simple product in which the marketing enhanced the original product -- such as the very successful campaign in which an ordinary rock was marketed and sold as a pet. Hence, weaker bidders were discouraged by previous auctions and did not bother to participate and since the participation rate was low, it made it easier for the strong bidders to collude. It should be about four pages in length, excluding the diagrams which you are required to draw to substantiate your points. A bad auction design that was not tailored to the Italian environment and a low reserve price resulted in Italy only earning less than 25 billion euros. And the price that government accepts was also reduced for some reason. You must also present an introduction that is riveting, draws the reader in and inspires him to read more of your essay. When these happen, the capital and financial account and hence the balance of payments of Singapore will deteriorate. Both this facts generated highly competitive auction environment and limited possible collusions. The last mistake that the Swiss government made was to set a reserve price that was way too low. The best way for government to sell available resources is to declare an auction. Knowledge and comprehension are often considered the lower-order thinking skills.
based on 22 review