Auctions can maximise the value of a resource. Resource owners – often governments – need good auction design to capture this value, and buyers need the right strategy to get the best deal.
We work with both bidders and vendors, and know that economics is the foundation of auction design. The balance between bidding mechanisms, incentives, pay-offs and bidder strategy sets prices and returns. Understanding how these interact, in theory and practice, means vendors can make sure they get a market return from their asset and that bidders get value for money.
Our auction design team works closely with industry practices to help clients design and bid in auctions, including some of the largest infrastructure sales in Australia. We use game theory, competitor analysis, demand estimation and financial modelling to advise on design, strategy and pricing in all auctions types and markets.
Our auction work includes designing and implementing the sale of the NSW generation assets in 2010-12. We advised on all aspects of the auction design, including bidding rules, competition issues, reserve pricing, and contract terms.