---
title: "Setting the reserve price for the Tracer DAO Gnosis auction"
author: "Berg, C.; Khezr, P."
date: "2021-06-04"
url: "https://chrisberg.org/2021/06/setting-the-reserve-price-for-the-tracer-dao-gnosis-auction/"
type: "Working papers"
published_in: "Working paper"
pdf: "https://chrisberg.org/wp-content/uploads/2021/06/Khezr-and-Berg-TracerDAO-Gnosis-auction-reserve-price.pdf"
topics: "Markets and prices"
---

# Setting the reserve price for the Tracer DAO Gnosis auction

*With Peyman Khezr*

**Introduction:**Selling multiple units of a homogeneous good in an auction is one way of determining the market price. Uniform-price auctions have been used in many real-world markets because of their price discovery property: All winning bidders pay the same price (either highest losing bid or lowest winning bid). The question is how a seller could compute an optimal reserve price in a uniform price auction. First we should note that literature suggests a positive reserve price is usually better than no reserve price as it reduces the chance of underbidding by bidders. However, to compute the reserve price for a uniform price auction there are no clear criteria. In this note we follow the criteria given for the second-price auction as the best approximate of the uniform-price auction.

[PDF available here](https://chrisberg.org/wp-content/uploads/2021/06/Khezr-and-Berg-TracerDAO-Gnosis-auction-reserve-price.pdf)