Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study
AbstractThis paper considers the sealed bid and ascending auction, which both identifies the minimum Walrasian equilibrium prices and where truthful preference revelation constitutes an equilibrium. Even though these auction formats share many theortical properties, there are behavioral aspects that are not easily captured. To explore this issue in more detail, this paper experimentally investigates what role the design of the auction format has for its outcome. The results suggest that the sealed bid mechanism performs weakly better in all of investigated measures (consistent reporting, efficiency etc.). In addition, we find that the performance of the ascending auction is increasing over time, whereas the sealed bid auction shows no such tendency.
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Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 882.
Length: 15 pages
Date of creation: 19 Sep 2011
Date of revision:
Publication status: Forthcoming as Andersson, Christer, Ola Andersson and Tommy Andersson, 'Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study' in Review of Economic Design.
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More information through EDIRC
Auctions; Non-manipulability; Efficiency; Experiments;
Other versions of this item:
- Andersson, Tommy & Andersson, Christer & Andersson, Ola, 2010. "Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study," Working Papers 2010:17, Lund University, Department of Economics.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-01 (All new papers)
- NEP-EXP-2011-10-01 (Experimental Economics)
- NEP-GTH-2011-10-01 (Game Theory)
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.:
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CORE Discussion Papers
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- Anthony M. Kwasnica & Katerina Sherstyuk, 2013. "Multi-Unit Auctions," Working Papers 201301, University of Hawaii at Manoa, Department of Economics.
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