# Auction First Price Shading

> Computes the optimal shaded bid for a first-price sealed-bid auction given a true private value,…

Computes the optimal shaded bid for a first-price sealed-bid auction given a true private value, an estimate of the number of competing bidders N, and a value-distribution assumption. Implements the `(N-1)/N` equilibrium shading rule for uniform private values, adjusts for log-normal or empirical value distributions, layers a risk-aversion adjustment, and caps output against the bidder's remaining budget. Domain-neutral auction theory reusable across fantasy sports (baseball FAAB, NBA/NHL waiver auctions), prediction-market limit sizing, sealed procurement bids, and any blind-bid context. Use when user mentions "first-price auction bid", "sealed bid shading", "(N-1)/N", "FAAB bid amount", "auction shading", "optimal bid first-price", "bid for sealed-bid", "blind bid sizing", or when downstream logic needs a principled shade factor rather than an ad-hoc heuristic.

- Page: https://ss33.ai/skills/lyndonkl/auction-first-price-shading-77046245341
- Publisher: lyndonkl
- Category: [Betting & Prediction Markets](https://ss33.ai/skills/category/betting-and-prediction-markets-hli6cz) › [Fantasy sports](https://ss33.ai/skills/category/betting-and-prediction-markets-hli6cz/fantasy-sports-tqmekp)
- Source: https://github.com/lyndonkl/claude/blob/4acc337d4dbdb19da6469eb2504c16669c1cafa1/skills/auction-first-price-shading/SKILL.md

## Skill

This skill's licence does not allow redistribution, so the store does not serve its text. Get it from the author: https://github.com/lyndonkl/claude/blob/4acc337d4dbdb19da6469eb2504c16669c1cafa1/skills/auction-first-price-shading/SKILL.md