Auction and tender

One sealed round against one credible rival. In a tender the lowest eligible bid wins and the reserve is the buyer's ceiling; in a sale the highest wins and the reserve is a floor.

Result

solving

Solving…

Surplus at every bid on the grid

Rival's bid

What moves it

Rival's cost or value	Bid	Surplus
Solving…

Every row is a separate solve with only this input changed. Rows that return a different recommendation are marked.

Inputs

Your cost to deliver

What you think it costs them

Buyer's walk-away price

Bids above this are not eligible.

Precision

Per dollar of surplus. Higher means the rival bids closer to their own optimum every time.

Lowest bid on the grid

Highest bid on the grid

Bid step

8 levels on the grid.

In Python

sq.AuctionProblem(costs=[85000, 88000], grid=(88000, 116000, 4000), reserve=112000, precision=5e-4).solve() returns the same solution. Pass values= instead of costs= for a sale.