Simultaneous Allocation of Bundled Goods Through Auctions: Assessing the Case for Joint Bidding
AbstractWe use the experimental method to study the costs and benefits of allowing joint bidding in simultaneous multi-unit first price sealed bid auctions for bundled goods. The research has immediate applications to the sale of public forest stands that arbor a mixture of species. Joint bidding and communication raise the prospect of higher allocative efficiency, but also of collusive bidding through a reduction in the number of bidders and a greater scope for the formation of bidding rings. However, we find that allowing joint bidding has a significant positive impact on efficiency and reduces collusion significantly. We also explore the robustness of the results to characteristics of the auction environment that are relevant to timber auctions.
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Bibliographic InfoPaper provided by CIRANO in its series CIRANO Working Papers with number 2013s-37.
Date of creation: 01 Sep 2013
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Timber auctions; forest industry; joint bidding; bidding rings; collusion; simultaneous auction; starting price; two bidder rule;
Find related papers by JEL classification:
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D47 - Microeconomics - - Market Structure and Pricing - - - Market Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-18 (All new papers)
- NEP-COM-2014-04-18 (Industrial Competition)
- NEP-EXP-2014-04-18 (Experimental Economics)
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