Numberphile: The Ideal Auction

Two months ago I have started an interesting topic related to the price discovery. This topic is rather important in the contemporary context as it is often claimed that we should "let (the markets) go" (fr. Laissez-faire) with out any regulation or influence from the government. Supposedly free markets would discover the fairest prices and allocate resources to the most capable. I would like to argue that this is true only in limited circumstances.

The following Numberphile video can be seen as argument that the rules under which the market agrees to operate (or is forced to operate) heavily impacts the prices, which are discovered. Note that this video discusses auctions, which are not exactly an everyday economic interaction experienced by an every-man, though some ideas can be creatively generalized for the economics as whole.