Sealed-Bid Auctions: Case Study
AbstractAuctions are an important link in supply chains.This paper presents an empirical investigation of a single-shot simultaneous or sealed-bid auction.This case study concerns the mussel trade in Yerseke, the Netherlands.It surprisingly demonstrates that companies buying large quantities of mussels pay higher unit prices.It also reveals that auction prices react sharply to changes in annual supply and that seasonality causes a bullwhip effect.Finally, purchase managers perform significantly differently from each other, when accounting for the above price factors and "hedonic price" factors, which represent objectively measured product characteristics.To derive these conclusions, this paper uses a simple linear regression model that: (i) extracts information from a database of 28,017 mussel lots enabling the rejection of four intuitive null-hypotheses; (ii) has signs for all explanatory variables that are correct from the viewpoint of economics or marine biology; and (iii) provides a novel tool for objective performance evaluation of purchase managers.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2001-73.
Date of creation: 2001
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
auctions; performance measurement; purchasing; supply chain;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-10-22 (All new papers)
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.:
- GINSBURGH, Victor, .
"Absentee bidders and the declining price anomaly in wine auctions,"
CORE Discussion Papers RP
-1364, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Victor A. Ginsburgh, 1998. "Absentee Bidders and the Declining Price Anomaly in Wine Auctions," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1302-1331, December.
- Victor Ginsburgh, 1998. "Absentee bidders and the declining price anomaly in wine auctions," ULB Institutional Repository 2013/1701, ULB -- Universite Libre de Bruxelles.
- Milgrom, Paul R & Weber, Robert J, 1982.
"A Theory of Auctions and Competitive Bidding,"
Econometric Society, vol. 50(5), pages 1089-1122, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If references are entirely missing, you can add them using this form.