How to Organize Sequential Auctions: Results of a Natural Experiment by Christie's
AbstractIn empirical studies of sequential auctions of identical objects prices have been found to decline.We study auctions of ancient Chinese porcelain recovered from shipwrecks.In these auctions there are very long sequences of lots of identical objects.We find that the average price decline is smaller in long sequences.It is especially large for the first pair of lots auctioned; it is also larger when the price of the previous lot was larger than (the upper bound of the range of) the pre-sale estimate of the previous lot and when the number of items in lots that follow each other increases.As a consequence, it appears that sellers may have some control over the sequence of prices and therefore on their revenue.Our results point to the fact that a sequence of lots each of which contains the same number of items generates more revenue than lots with varying number of items.
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 2003-25.
Date of creation: 2003
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
auctions; prices; estimation;
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
This paper has been announced in the following NEP Reports:
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.:
- Paul Milgrom & Robert J. Weber, 1981.
"A Theory of Auctions and Competitive Bidding,"
447R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Robert J. Weber, 1981. "Multiple-Object Auctions," Discussion Papers 496, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Chanel, O. & Gerard-Varet, L.A., 1996. "Auction Theory and Practice Evidence from the Market for Jewellery," G.R.E.Q.A.M. 96b05, Universite Aix-Marseille III.
- Ashenfelter, O. & Genesove, D., 1992.
"Testing for Price Anomalies in Real Estate Auctions,"
92-2, Massachusetts Institute of Technology (MIT), Department of Economics.
- Ashenfelter, Orley & Genesove, David, 1992. "Testing for Price Anomalies in Real-Estate Auctions," American Economic Review, American Economic Association, vol. 82(2), pages 501-05, May.
- Orley Ashenfelter & David Genesove, 1992. "Testing for Price Anomalies in Real Estate Auctions," NBER Working Papers 4036, National Bureau of Economic Research, Inc.
- Ashenfelter, O. & Genesove, D., 1992. "Testing for Price Anomalies in real Estate Auctions," Papers 128, Princeton, Department of Economics - Financial Research Center.
- Victor Ginsburgh, 1998.
"Absentee bidders and the declining price anomaly in wine auctions,"
ULB Institutional Repository
2013/1701, ULB -- Universite Libre de Bruxelles.
- 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.
- 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).
- Flavio Menezes & Paulo Monteiro, 1997.
"Sequential asymmetric auctions with endogenous participation,"
Theory and Decision,
Springer, vol. 43(2), pages 187-202, September.
- Fl. Menezes & P.K.Monteiro, 1994. "Sequential Asymmetric Auctions With Endogenous Participation," Microeconomics 9402001, EconWPA, revised 09 Jun 1994.
- Elmar WOLFSTETTER, 1994.
"Auctions: An Introduction,"
SFB 373 Discussion Papers
1994,13, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- von der Fehr, Nils-Henrik Morch, 1994. "Predatory Bidding in Sequential Auctions," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 345-56, July.
- repec:att:wimass:9215 is not listed on IDEAS
- Gerard J. van den Berg & Jan C. van Ours & Menno P. Pradhan, 2001. "The Declining Price Anomaly in Dutch Dutch Rose Auctions," American Economic Review, American Economic Association, vol. 91(4), pages 1055-1062, September.
- Victor Ginsburgh & Pierre-Michel Menger, 1996.
"Economics of the Arts: Selected essays,"
ULB Institutional Repository
2013/152420, ULB -- Universite Libre de Bruxelles.
- Black, Jane & De Meza, David, 1992. "Systematic Price Differences between Successive Auctions Are No Anomaly," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 1(4), pages 607-28, Winter.
- Nauro F. Campos & Renata Leite Barbosa, 2009.
"Paintings and numbers: an econometric investigation of sales rates, prices, and returns in Latin American art auctions,"
Oxford Economic Papers,
Oxford University Press, vol. 61(1), pages 28-51, January.
- Campos, Nauro F & Leite Barbosa, Renata, 2008. "Paintings and Numbers: An Econometric Investigation of Sales Rates, Prices and Returns in Latin American Art Auctions," IZA Discussion Papers 3445, Institute for the Study of Labor (IZA).
- Barbosa, Renata Leite & Campos, Nauro F, 2008. "Paintings and Numbers: An Econometric Investigation of Sales Rates, Prices and Returns in Latin American Art Auctions," CEPR Discussion Papers 6806, C.E.P.R. Discussion Papers.
- Raphaële Préget & Patrick Waelbroeck, 2006. "Un modèle d'estimation de la valeur des lots de bois à partir de résultats d'enchères avec invendus," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 593-603.
- Johannes Horner & Julian Jamison, 2006. "Private Information in Sequential Common-Value Auctions," Discussion Papers 1422, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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.