Uniform vs. Discriminatory Auctions with Variable Supply - Experimental Evidence
AbstractIn the variable supply auction considered here, the seller decides how many costumers with unit demand to serve after observing their bids. Bidders are uncertain about the seller's cost. We experimentally investigate whether a uniform or a discriminatory price auction is better for the seller in this setting. Exactly as predicted by theory, it turns out that the uniform price auction produces substantially higher bids, and consequently yields higher revenues and profits for the seller. Somewhat surprisingly but again predicted by theory, it also yields a higher number of transactions, which makes it the more efficient auction format.
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Bibliographic InfoPaper provided by University of Heidelberg, Department of Economics in its series Working Papers with number 0460.
Length: 31 pages
Date of creation: Nov 2007
Date of revision: Nov 2007
auctions; experiment; discriminatory; uniform;
Other versions of this item:
- Damianov, Damian S. & Oechssler, Jörg & Becker, Johannes Gerd, 2010. "Uniform vs. discriminatory auctions with variable supply - experimental evidence," Games and Economic Behavior, Elsevier, vol. 68(1), pages 60-76, January.
- Damianov, Damian S. & Oechssler, Jörg & Becker, Johannes Gerd, 2007. "Uniform vs. Discriminatory Auctions with Variable Supply - Experimental Evidence," Sonderforschungsbereich 504 Publications 07-68, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-12-19 (All new papers)
- NEP-EXP-2007-12-19 (Experimental Economics)
- NEP-GTH-2007-12-19 (Game Theory)
- NEP-MIC-2007-12-19 (Microeconomics)
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