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'Catalogue' vs 'Order-of-sale' effects in sequential auctions: theory and evidence from a rare book sale

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Author Info
George Deltas
Georgia Kosmopoulou

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Abstract

We examine bidding in a rare book sequential auction that has features of a natural experiment: lots were arranged in alphabetical order, the reserve set non-strategically and half the bids placed by mail-in bidders. We distinguish between the effects induced by the print order of the catalogue from those by the sequential nature of the sale. We document the existence of distinct 'catalogue' effects on prices, number of bids, and price variability and determine their causes. We demonstrate that these catalogue effects also influence floor bidder behaviour. We derive a theoretical model that generates key aspects of floor bidder behaviour. Copyright 2004 Royal Economic Society.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 114 (2004)
Issue (Month): 492 (01)
Pages: 28-54
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Handle: RePEc:ecj:econjl:v:114:y:2004:i:492:p:28-54

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  1. Christine Zulehner, 2007. "Bidding behavior in sequential cattle auctions," Vienna Economics Papers 0705, University of Vienna, Department of Economics. [Downloadable!]
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