Demand Reduction In Multi-Unit Auctions With Varying Numbers Of Bidders: Theory And Evidence From A Field Experiment
AbstractRecent auction theory and experimental results document strategic demand reduction by bidders in uniform-price auctions. The present article extends this area of research to consider the effects of varying the number of bidders. Our theoretical model predicts that demand reduction should decrease with an increase in the number of bidders. Considerable demand reduction remains even in the asymptotic limit, although truthful bidding yields profits very close to those of equilibrium play. We experimentally confirm several of our predictions by examining bidding behavior of subjects in an actual marketplace, auctioning dozens of sportscards using both uniform-price and Vickrey auction formats. Copyright 2006 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 47 (2006)
Issue (Month): 1 (02)
Contact details of provider:
Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
Other versions of this item:
- Richard Engelbrecht-Wiggans & John List & David Reiley, 2004. "Demand reduction in a multi-unit auctions with varying numbers of bidders: Theory and evidence from a field experiment," Framed Field Experiments 00147, The Field Experiments Website.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John List & Jason Shogren, 1998.
"Calibration of the difference between actual and hypothetical valuations in a field experiment,"
Natural Field Experiments
00296, The Field Experiments Website.
- List, John A. & Shogren, Jason F., 1998. "Calibration of the difference between actual and hypothetical valuations in a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 37(2), pages 193-205, October.
- Christie, Andrew A., 1990. "Aggregation of test statistics : An evaluation of the evidence on contracting and size hypotheses," Journal of Accounting and Economics, Elsevier, vol. 12(1-3), pages 15-36, January.
- Engelbrecht-Wiggans, Richard, 1999. "An example of multi-unit auctions with atypically many equilibria," Economics Letters, Elsevier, vol. 65(1), pages 67-69, October.
- John McMillan, 1994. "Selling Spectrum Rights," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 145-162, Summer.
- Axel Ockenfels & David Reiley & Abdolkarim Sadrieh, 2006. "Online Auctions," NBER Working Papers 12785, National Bureau of Economic Research, Inc.
- Katkar Rama & Reiley David H, 2007.
"Public versus Secret Reserve Prices in eBay Auctions: Results from a Pokémon Field Experiment,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 5(2), pages 1-25, January.
- Rama Katkar & David Lucking-Reiley, 2000. "Public versus secret reserve prices in ebay auctions: Results from a pokemon field experiment," Natural Field Experiments 00285, The Field Experiments Website.
- Rama Katkar & David Lucking-Reiley, 2001. "Public Versus Secret Reserve Prices in eBay Auctions: Results from a Pokemon Field Experiment," NBER Working Papers 8183, National Bureau of Economic Research, Inc.
- Schnitzlein, Charles R. & Shao, Minjie, 2013. "Capacity constraints and the winner's curse in multi-unit common value auctions," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(2), pages 188-201.
- Dirk Engelmann & Veronika Grimm, 2003.
"Bidding Behavior in Multi-Unit Auctions - An Experimental Investigation and some Theoretical Insights,"
CERGE-EI Working Papers
wp210, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- Dirk Engelmann & Veronika Grimm, 2004. "Bidding Behavior In Multi-Unit Auctions - An Experimental Investigation And Some Theoretical Insights," Working Papers. Serie AD 2004-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Ahlberg , Joakim, 2012. "Multi-unit common value auctions: a laboratory experiment with three sealed-bid mechanisms," Working papers in Transport Economics 2012:23, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
- Porter, David & Rassenti, Stephen & Shobe, William & Smith, Vernon & Winn, Abel, 2009. "The design, testing and implementation of Virginia's NOx allowance auction," Journal of Economic Behavior & Organization, Elsevier, vol. 69(2), pages 190-200, February.
- Maurice Doyon & Lota Dabio Tamini & Virginie Simard & Kent Messer & Harry M. Kaiser, 2006. "L’économie expérimentale pour l’analyse de modifications au système centralisé de vente du quota laitier au Québec," CIRANO Working Papers 2006s-23, CIRANO.
- Susan Athey & Philip A. Haile, 2002.
"Identification of Standard Auction Models,"
Econometric Society, vol. 70(6), pages 2107-2140, November.
- Levitt, Steven D. & List, John A., 2009.
"Field experiments in economics: The past, the present, and the future,"
European Economic Review,
Elsevier, vol. 53(1), pages 1-18, January.
- Steven D. Levitt & John A. List, 2008. "Field Experiments in Economics: The Past, The Present, and The Future," NBER Working Papers 14356, National Bureau of Economic Research, Inc.
- Steven Levitt & John List, 2009. "Field experiments in economics: The past, the present, and the future," Artefactual Field Experiments 00079, The Field Experiments Website.
- Raphaële Préget & Sophie Thoyer, 2009. "Multi-Unit Auctions and Competition Stricture," Working Papers 09-18, LAMETA, Universtiy of Montpellier, revised Dec 2009.
- Rama Katkar & David Lucking-Reiley, 2000. "Public Versus Secret Reserve Prices in eBay Auctions: Results of Pokï¿½mon Field Experiment," Vanderbilt University Department of Economics Working Papers 0026, Vanderbilt University Department of Economics.
- Dormady, Noah C., 2013. "Market power in cap-and-trade auctions: A Monte Carlo approach," Energy Policy, Elsevier, vol. 62(C), pages 788-797.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.