Bidder Preferences Among Auction Institutions
AbstractThis study examines bidder preferences between alternative auction institutions. We seek to experimentally characterize the degree to which bidders prefer an ascending auction to a sealed bid auction. We find very strong ceteris paribus preferences for the ascending institution with bidders choosing it overwhelmingly often when entry prices for the two auctions are the same. When the entry prices of the two auctions differ, many subjects can be shown to be willing to pay more to enter the ascending auction than is explainable by their risk attitudes when accounting for their expectations about the risk preferences of their opponents.
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Bibliographic InfoPaper provided by EconWPA in its series Experimental with number 0404005.
Length: 18 pages
Date of creation: 22 Apr 2004
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auctions; mechanism design; electronic markets;
Other versions of this item:
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-25 (All new papers)
- NEP-COM-2004-04-25 (Industrial Competition)
- NEP-EXP-2004-04-25 (Experimental Economics)
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