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Experimental Auction Procedure: Impact on Valuation of Quality Differentiated Goods Author info | Abstract | Publisher info | Download info | Related research | Statistics J.L. Lusk
T. Feldkamp
T.C. Schroeder
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Despite increased use of experimental auctions, a myriad of different procedures are being employed without formal consideration of how the procedures might affect results. The study investigates the effect of several procedural issues on valuation estimates from experimental auctions. Results indicate the second price auction generates higher valuations than English, Becker-DeGroot-Marschak (BDM), and random nth price auctions, especially in latter bidding rounds, and that random nth price auction yields lower valuations than English and BDM auctions. We find that endowing subjects with a good prior to eliciting bids can have an impact on valuationsk, but the effect varies across auction mechanism.
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Paper provided by The Field Experiments Website in its series Artefactual Field Experiments with number
0069.
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Length: 17 pages
Date of creation: 2004Date of revision:
Handle: RePEc:feb:artefa:0069Contact details of provider: Web page: http://www.fieldexperiments.com
For technical questions regarding this item, or to correct its listing, contact: (Trevor Gallen).
Keywords: BDM ; endowment effect ; English auction ; random nth price auction ; Vickery second price auction ; Other versions of this item:
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