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Starategic Implications of Uncertainty Over One's Own Private Value in Auctions Author info | Abstract | Publisher info | Download info | Related research | Statistics Eric B. Rasmusen (Kelley School of Business, Indiana University and CIRJE, Faculty of Economics, University of Tokyo)
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Bidders have to decide whether and when to incur the cost of estimating their own values in auctions. This can explain sniping - flurries of bids late in auctions with deadlines - as the result of bidders trying to avoid stimulating other bidders into examining their bid ceiling more carefully.
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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number
CIRJE-F-127.
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Length: 28 pages
Date of creation: Aug 2001Date of revision:
Handle: RePEc:tky:fseres:2001cf127Contact details of provider: Web page: http://www.e.u-tokyo.ac.jp/cirje/index.htm
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References listed on IDEAS 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 Rasmusen, 2007.
"Getting Carried Away in Auctions as Imperfect Value Discovery ,"
Working Papers
2007-05, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
[Downloadable!]
Other versions: Janssen, Maarten & Rasmusen, Eric, 2002.
"Bertrand Competition under Uncertainty ,"
Journal of Industrial Economics ,
Blackwell Publishing, vol. 50(1), pages 11-21, March.
[Downloadable!] (restricted)
Other versions:
Maarten Janssen & Eric Rasmusen, 2001.
"Bertrand Competition Under Uncertainty ,"
CIRJE F-Series
CIRJE-F-117, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!] Maarten Janssen & Eric Rasmusen, 2000.
"Bertrand Competition Under Uncertainty ,"
Econometric Society World Congress 2000 Contributed Papers
1309, Econometric Society.
[Downloadable!] Eric Rasmusen, 1996.
"Bertrand Competition Under Uncertainty ,"
Industrial Organization
9607002, EconWPA.
[Downloadable!] Maarten C.W. Janssen & Eric Rasmusen, 1998.
"Bertrand Competition under Uncertainty ,"
Tinbergen Institute Discussion Papers
98-083/1, Tinbergen Institute.
[Downloadable!] McAfee, R. Preston & McMillan, John, 1987.
"Auctions with a stochastic number of bidders ,"
Journal of Economic Theory ,
Elsevier, vol. 43(1), pages 1-19, October.
[Downloadable!] (restricted)
Burdett, Kenneth & Judd, Kenneth L, 1983.
"Equilibrium Price Dispersion ,"
Econometrica ,
Econometric Society, vol. 51(4), pages 955-69, July.
[Downloadable!] (restricted)
Hausch, Donald B & Li, Lode, 1993.
"A Common Value Auction Model with Endogenous Entry and Information Acquisition ,"
Economic Theory ,
Springer, vol. 3(2), pages 315-34, April.
David Hirshleifer, 1989.
"Facilitation of Competing Bids and the Price of a Takeover Target ,"
University of California at Los Angeles, Anderson Graduate School of Management
1193, Anderson Graduate School of Management, UCLA.
[Downloadable!]
Engelbrecht-Wiggans, Richard, 2001.
"The effect of entry and information costs on oral versus sealed-bid auctions ,"
Economics Letters ,
Elsevier, vol. 70(2), pages 195-202, February.
[Downloadable!] (restricted)
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.
[Downloadable!]
Other versions: Levin, Dan & Smith, James L, 1994.
"Equilibrium in Auctions with Entry ,"
American Economic Review ,
American Economic Association, vol. 84(3), pages 585-99, June.
[Downloadable!] (restricted)
Charles D. Kolstad Rolando M. Guzman, .
"Auction Equilibrium with Costly Information Acquisition ,"
University of California at Santa Barbara, Economics Working Paper Series
17-97, Department of Economics, UC Santa Barbara.
[Downloadable!]
Other versions: Alvin E. Roth & Axel Ockenfels, 2000.
"Last Minute Bidding and the Rules for Ending Second-Price Auctions: Theory and Evidence from a Natural Experiment on the Internet ,"
NBER Working Papers
7729, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Nicola Persico, 2000.
"Information Acquisition in Auctions ,"
Econometrica ,
Econometric Society, vol. 68(1), pages 135-148, January.
Other versions: Michael J. Fishman, 1988.
"A Theory of Preemptive Takeover Bidding ,"
RAND Journal of Economics ,
The RAND Corporation, vol. 19(1), pages 88-101, Spring.
[Downloadable!] (restricted)
Patrick Bajari & Ali Hortacsu, 2000.
"Winner's Curse, Reserve Prices and Endogenous Entry: Empirical Insights from eBay Auctions ,"
Econometric Society World Congress 2000 Contributed Papers
1927, Econometric Society.
[Downloadable!]
Thomas D. Jeitschko, 1998.
"Learning in Sequential Auctions ,"
Southern Economic Journal ,
Southern Economic Association, vol. 65(1), pages 98-112, July.
Milgrom, Paul R & Weber, Robert J, 1982.
"A Theory of Auctions and Competitive Bidding ,"
Econometrica ,
Econometric Society, vol. 50(5), pages 1089-1122, September.
[Downloadable!] (restricted)
Other versions: Eric Bennett Rasmusen, 2001.
"Explaining Incomplete Contracts as the Result of Contract-Reading Costs ,"
The B.E. Journal of Economic Analysis & Policy ,
Berkeley Electronic Press, vol. 0(1).
[Downloadable!]
Full
references Cited by : (explanations , 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.)
Christopher Cotton, 2008.
"Multiple-bidding in auctions as bidders become confident of their private valuations ,"
Working Papers
0902, University of Miami, Department of Economics.
[Downloadable!]
Other versions:
Cotton, Christopher, 2007.
"Multiple-bidding in auctions as bidders become confident of their private valuations ,"
MPRA Paper
1844, University Library of Munich, Germany.
[Downloadable!] 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.
[Downloadable!] (restricted) Sascha Füllbrunn, 2009.
"A comparison of Candle Auctions and Hard Close Auctions with Common Values ,"
FEMM Working Papers
09019, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
[Downloadable!]
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