Experimental Evidence on the Multibidding Mechanism
AbstractPrez-Castrillo and Wettstein (2002) and Veszteg (2004) propose the use of a multibidding mechanism for situations where agents have to choose a common project. Examples are decisions involving public goods (or public "bads"). We report experimental results to test the practical tractability and effectiveness of the multibidding mechanisms in environments where agents hold private information concerning their valuation of the projects. The mechanism performed quite well in the laboratory: it provided the ex post efficient outcome in roughly three quarters of the cases across the treatments; moreover, the largest part of the subject pool formed their bids according to the theoretical bidding behavior.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 155.
Date of creation: Jan 2005
Date of revision:
Experiments; mechanisms; uncertainty;
Other versions of this item:
- David Perez-Castrillo & Robert F. Veszteg, 2005. "Experimental Evidence on the Multibidding Mechanism," UFAE and IAE Working Papers 638.05, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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