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Bidding Behaviour in Multi‐Unit Auctions – An Experimental Investigation

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  • Dirk Engelmann
  • Veronika Grimm

Abstract

We present laboratory experiments of five different multi‐unit auction mechanisms. Two units of a homogeneous object were auctioned off among two bidders with flat demand for two units. We test whether expected demand reduction occurs in open and sealed‐bid uniform‐price auctions. We also test revenue equivalence for these auctions as well as for the Ausubel, the Vickrey and the discriminatory sealed‐bid auction. Furthermore, we compare the five mechanisms with respect to the efficient allocation of the units.

Suggested Citation

  • Dirk Engelmann & Veronika Grimm, 2009. "Bidding Behaviour in Multi‐Unit Auctions – An Experimental Investigation," Economic Journal, Royal Economic Society, vol. 119(537), pages 855-882, April.
    • Handle: RePEc:wly:econjl:v:119:y:2009:i:537:p:855-882
    DOI: 10.1111/j.1468-0297.2009.02249.x
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    More about this item

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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