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An Experimental Analysis of Ending Rules in Internet Auctions Author info | Abstract | Publisher info | Download info | Related research | Statistics Dan Ariely () (Massachusetts Institute of Technology)
Axel Ockenfels () (University of Cologne)
Alvin E. Roth () (Harvard University)
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A great deal of late bidding has been observed on eBay, which employs a second-price auction with a fixed deadline. Much less late bidding has been observed on Amazon, which can only end when ten minutes have passed without a bid. In controlled experiments, we find that the difference in the ending rules is sufficient by itself to produce the differences in late bidding observed in the field data. The data also allow us to examine bid amounts in relation to private values, and how behavior is shaped by the different opportunities for learning provided in the auction conditions. Ordering information: This article can be ordered from https://pubs3.rand.org/cgi-bin/rje/pdf.cgi .
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Article provided by The RAND Corporation in its journal RAND Journal of Economics .
Volume (Year): 36 (2005)
Issue (Month): 4 (Winter)
Pages: 890-907
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Handle: RePEc:rje:randje:v:36:y:2005:4:p:890-907Contact details of provider: Web page: http://www.rje.org
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Paper Dan Ariely & Axel Ockenfels & Alvin E. Roth, 2002.
"An Experimental Analysis of Ending Rules in Internet Auctions ,"
Discussion Papers on Strategic Interaction
2002-47, Max Planck Institute of Economics, Strategic Interaction Group.
[Downloadable!] Dan Ariely & Axel Ockenfels & Alvin E Roth, 2003.
"An Experimental Analysis of Ending Rules in Internet Auctions ,"
Levine's Bibliography
506439000000000433, UCLA Department of Economics.
[Downloadable!] Dan Ariely & Axel Ockenfels & Alvin E. Roth, 2003.
"An Experimental Analysis of Ending Rules in Internet Auctions ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!] References listed on IDEAS 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.: Ernan Haruvy & Alvin E. Roth & M. Utku Unver, 2004.
"The Dynamics of Law Clerk Matching: An Experimental and Computational Investigation of Proposals for Reform of the Market ,"
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"Moral property rights in bargaining ,"
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Other versions: Paul R. Milgrom, 1985.
"Auction Theory ,"
Cowles Foundation Discussion Papers
779, Cowles Foundation, Yale University.
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Ockenfels, Axel & Roth, Alvin E., 2006.
"Late and multiple bidding in second price Internet auctions: Theory and evidence concerning different rules for ending an auction ,"
Games and Economic Behavior ,
Elsevier, vol. 55(2), pages 297-320, May.
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13213, National Bureau of Economic Research, Inc.
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The Quarterly Journal of Economics ,
MIT Press, vol. 115(1), pages 201-235, February.
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Alvin E. Roth & Axel Ockenfels, 2002.
"Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet ,"
American Economic Review ,
American Economic Association, vol. 92(4), pages 1093-1103, September.
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Eric Rasmusen, 2004.
"Strategic Implications of Uncertainty Over One’s Own Private Value in Auctions ,"
Working Papers
2004-13, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
[Downloadable!] Eric B. Rasmusen, 2001.
"Starategic Implications of Uncertainty Over One's Own Private Value in Auctions ,"
CIRJE F-Series
CIRJE-F-127, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!] Roth, Alvin E & Xing, Xiaolin, 1994.
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American Economic Association, vol. 84(4), pages 992-1044, September.
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Kagel, John H & Harstad, Ronald M & Levin, Dan, 1987.
"Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study ,"
Econometrica ,
Econometric Society, vol. 55(6), pages 1275-1304, November.
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Alvin E. Roth, 2002.
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Econometrica ,
Econometric Society, vol. 70(4), pages 1341-1378, July.
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Patrick Bajari & Ali Hortacsu, 2000.
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Werner Güth & Maria Vittoria Levati & Boris Maciejovsky, 2001.
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Discussion Papers on Strategic Interaction
2001-01, Max Planck Institute of Economics, Strategic Interaction Group.
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Roth, Alvin E & Murnighan, J Keith & Schoumaker, Francoise, 1988.
"The Deadline Effect in Bargaining: Some Experimental Evidence ,"
American Economic Review ,
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Full
references Cited by : (explanations , 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.)
Nicola Dimitri, 2007.
"Last minute bidding equilibrium in second price internet auctions ,"
Department of Economic Policy, Finance and Development (DEPFID) University of Siena
001, Department of Economic Policy, Finance and Development (DEPFID), University of Siena.
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Gary Bolton & Elena Katok & Axel Ockenfels, 2002.
"How Effective are Online Reputation Mechanisms? ,"
Discussion Papers on Strategic Interaction
2002-25, Max Planck Institute of Economics, Strategic Interaction Group.
[Downloadable!]
Gary Bolton, 2003.
"How Effective are Electronic Reputation Mechanisms? ,"
Working Papers
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Gary Bolton & Elena Katok & Axel Ockenfels, 2002.
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Alvin E. Roth & Axel Ockenfels, 2002.
"Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet ,"
American Economic Review ,
American Economic Association, vol. 92(4), pages 1093-1103, September.
[Downloadable!] (restricted)
Other versions: Gary E. Bolton & Elena Katok & Axel Ockenfels, 2003.
"How Effective are Electronic Reputation Mechanisms? An Experimental Investigation ,"
Working Paper Series in Economics
3, University of Cologne, Department of Economics.
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Ladislav Wintr, 2008.
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200801-25, National Bank of Belgium.
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Axel Ockenfels & Alvin E. Roth, 2003.
"Late and Multiple Bidding in Second Price Internet Auctions: Theory and Evidence Concerning Different Rules for Ending an Auction ,"
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Anderson, Steven & Friedman, Daniel & Milam, Garrett & Singh, Nirvikar, 2007.
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Brit Grosskopf & Alvin E. Roth, 2006.
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