sets their Bidding Price based on individual utility.
(private buying value)
Category: Connecting value
Sensible Coffee
sets a Guide Price based on cup score.
(common value)
The Producer
sets their Reserve Price based on their production cost.
(private selling value)
Connecting Value
An auction works well as it is a space where both shared common values and individual private values are combined. This allows the individual to express their own value for a coffee alongside the shared indicator of cup score.