Theory Analysis and Demonstration of Vehicle License Auction

Based on private value bid model,three particular models are proposed for different auction methods,include Discriminate Auction(DA),Uniform Price Auction(UPA),and Simultaneously Ascending Auction(SAA),to describe vehicle license auction which is proceeding in Shanghai for years.According to solving and comparing the models,the late reform of Shanghai vehicle license auction is analyzed which happened in Jan 2008,and its impact to the lowest transaction price.In addition,the possible innovations of this auction is predicted in the future,and their possible results.