Multiple-bidding in auctions as bidders become confident of their private valuations
AbstractA bidder may increase his bid over the course of an auction when (1) he becomes more certain about his private valuation over time (as he has more time to consider using the item), and (2) there is a positive probability he is unable to return to the auction to submit a bid in a later period. Evidence from a classroom experiment supports the theoretical findings.
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Bibliographic InfoPaper provided by University of Miami, Department of Economics in its series Working Papers with number 0902.
Length: 7 pages
Date of creation: May 2008
Date of revision:
Publication status: Forthcoming: Under Review
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auction; eBay; multiple bidding; value discovery;
Other versions of this item:
- Cotton, Christopher, 2009. "Multiple bidding in auctions as bidders become confident of their private valuations," Economics Letters, Elsevier, vol. 104(3), pages 148-150, September.
- Cotton, Christopher, 2007. "Multiple-bidding in auctions as bidders become confident of their private valuations," MPRA Paper 1844, University Library of Munich, Germany.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-05 (All new papers)
- NEP-CTA-2009-04-05 (Contract Theory & Applications)
- NEP-EXP-2009-04-05 (Experimental Economics)
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.:
- Eric B. Rasmusen, 2001.
"Starategic Implications of Uncertainty Over One's Own Private Value in Auctions,"
CIRJE-F-127, CIRJE, Faculty of Economics, University of Tokyo.
- Rasmusen Eric Bennett, 2006. "Strategic Implications of Uncertainty over One's Own Private Value in Auctions," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 6(1), pages 1-22, November.
- Eric Rasmusen, 2004. "Strategic Implications of Uncertainty Over One’s Own Private Value in Auctions," Working Papers 2004-13, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
- Alvin E. Roth & Axel Ockenfels, 2002.
"Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet,"
American Economic Review,
American Economic Association, vol. 92(4), pages 1093-1103, September.
- Alvin E. Roth & Axel Ockenfels, . "Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet," Papers on Strategic Interaction 2002-32, Max Planck Institute of Economics, Strategic Interaction Group.
- Axel Ockenfels & Alvin E. Roth, 2003.
"Late and Multiple Bidding in Second Price Internet Auctions: Theory and Evidence Concerning Different Rules for Ending an Auction,"
CESifo Working Paper Series
992, CESifo Group Munich.
- Ockenfels, Axel & Roth, Alvin E., 2006. "Late and multiple bidding in second price Internet auctions: Theory and evidence concerning different rules for ending an auction," Games and Economic Behavior, Elsevier, vol. 55(2), pages 297-320, May.
- William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, 03.
- Bajari, Patrick & Hortacsu, Ali, 2003. " The Winner's Curse, Reserve Prices, and Endogenous Entry: Empirical Insights from eBay Auctions," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 329-55, Summer.
- Tim Grebe & Radosveta Ivanova-Stenzel & Sabine Kröger, 2009.
"Buy-it-Now Prices in eBay Auctions-The Field in the Lab,"
Cahiers de recherche
- Grebe, Tim & Ivanova-Stenzel, Radosveta & Kröger, Sabine, 2010. "Buy-It-Now prices in eBay Auctions - The Field in the Lab," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 294, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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