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Fixed Revenue Auctions: Theory And Behavior

Author

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  • CARY A. DECK
  • BART J. WILSON

Abstract

In this paper, we study auctions in which the revenue is fixed but the quantity is determined by the auction mechanism. Specifically, we investigate the theory and behavior of English quantity clock, Dutch quantity clock, last‐quantity sealed bid, and penultimate‐quantity sealed bid auctions. For theoretically equivalent fixed quantity and fixed revenue auctions, we find that fixed revenue auctions are robust to all the previously observed empirical regularities in fixed quantity auctions. (JEL C9, D4, L2)

Suggested Citation

  • Cary A. Deck & Bart J. Wilson, 2008. "Fixed Revenue Auctions: Theory And Behavior," Economic Inquiry, Western Economic Association International, vol. 46(3), pages 342-354, July.
    • Handle: RePEc:bla:ecinqu:v:46:y:2008:i:3:p:342-354
    DOI: 10.1111/j.1465-7295.2007.00090.x
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    References listed on IDEAS

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    1. Mill, Wladislaw & Morgan, John, 2022. "Competition between friends and foes," European Economic Review, Elsevier, vol. 147(C).

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    More about this item

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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