Bid Increments in Second-Price Sealed Bid Auctions
AbstractThis note concerns bidding in a hybrid first-price and second-price auction. The winning bidder sometimes pays his bid and sometimes pays an amount determined by the next highest bid. In internet auctions where bidders wait until the end of the auction to bid the auction reduces to a sealed-bid auction and the bid function we derive may be relevant in such cases.
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Bibliographic InfoPaper provided by EconWPA in its series Microeconomics with number 0506008.
Length: 6 pages
Date of creation: 24 Jun 2005
Date of revision:
Note: Type of Document - pdf; pages: 6
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sniper bidding; bid increments;
Other versions of this item:
- Richard Cox, 2005. "Bid Increments in Second-Price Sealed Bid Auctions," Microeconomics 0503007, EconWPA.
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-07-03 (All new papers)
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.:
- Ockenfels, Axel & Roth, Alvin E., 2006.
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"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.
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