A comparison of Candle Auctions and Hard Close Auctions with Common Values
AbstractWith this study, we contribute to the literature of auction design by presenting a new auction format: the Candle auction, a popular auction in the Middle Ages. Considering a common value framework, we theoretically and experimentally point out that the Candle auction, where bidding is allowed until a stochastic deadline, yields a better outcome to the seller than the Hard Close auction, the popular eBay online auction format.
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Bibliographic InfoPaper provided by Otto-von-Guericke University Magdeburg, Faculty of Economics and Management in its series FEMM Working Papers with number 09019.
Length: 28 pages
Date of creation: May 2009
Date of revision:
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More information through EDIRC
online auctions; market design; experimental economics; common value;
Find related papers by JEL classification:
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
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