00:01
Okay, so i see that you need help with this question.
00:03
And it says, throughout the question, you should use the buy part auction technique shown and show your work.
00:11
Consider matching market with three sellers.
00:14
So you're going to consider a matching market with three sellers.
00:25
With houses to sell and three buyers who are looking for houses.
00:35
Okay.
00:35
The buyer's valuations for the houses are listed below.
00:40
So valuations, a, b, c, buyer.
00:52
So it goes a, b, c, and then x is 8, 8, 4, 2, and y is 3, 1, 1.
01:23
And z is 654.
01:30
And it says, what is the optimal matching that maximizes the total valuation of the buyer? to find the optimal matching that maximizes the total valuation of the buyers, we can use the buy part of tight auction technique first we're going to create a table with the valuations of the buyers for each house so you have buyer a b c and then you have x 8 4 2 y 3 1 1 and then z 6 5 4 then we start the the auction by having each buyer bid on their most preferred house.
02:24
In this case, we have buyer x bids eight for house a.
02:32
Buyer y bids three for house a.
02:37
And buyer z buys bids six for house a.
02:42
Since buyer x has the highest bid, we assign house a to buyer x.
02:49
So a to buyer x.
02:55
And mark it as sold.
02:57
So x buyer x gets house a.
03:09
Buyer y, okay, i'm sorry.
03:13
So we also remove buyer x and house a from the table.
03:20
Okay, so this and this cancel out...