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 theoretical 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 Lund University, Department of Economics in its series Working Papers with number 2010:17.
Length: 10 pages
Date of creation: 17 Dec 2010
Date of revision:
Publication status: Published as Andersson, Tommy, Christer Andersson and Ola Andersson, 'Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study' in Review of Economic Design, 2013, pages 1-16.
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Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
Auctions; Non-manipulability; Efficiency; Experiments;
Other versions of this item:
- Andersson, Christer & Andersson, Ola & Andersson, Tommy, 2011. "Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study," Working Paper Series 882, Research Institute of Industrial Economics.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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