auction theory is regularly tested by people running auctions with billions of dollars at stake. of course the assumptions of the theory are never perfectly me

auction theory is regularly tested by people running auctions with billions of dollars at stake. of course the assumptions of the theory are never perfectly met in the real world, and things can get quite messy. but for instance, the theory predicts that certain kinds of auctions should fail quite badly, which has happened; and it gives prescriptions for better types of auctions, which have resulted in more revenue.