In a charity auction the public-goods nature of auction revenue affects bidding incentives. We compare equilibrium bidding and revenue in first-price, second-price, and all-pay charity auctions. Bidding revenue typically varies by selling format. First-price auctions are less lucrative than second-price and all-pay auctions, and with sufficiently many bidders the all-pay auction has the highest bidding revenue. However, revenue equivalence applies when the auctioneer can set a reserve price and fees plus threaten to cancel the auction. If the auctioneer cannot threaten cancellation, a reserve and bidding fee can augment revenue but again revenue varies by auction format Copyright 2007 by the Economics Department Of The University Of Pennsylvania And Osaka University Institute Of Social And Economic Research Association.
Volume (Year): 48 (2007)
Issue (Month): 3 (08)
|Contact details of provider:|| Postal: 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297|
Phone: (215) 898-8487
Fax: (215) 573-2057
Web page: http://www.econ.upenn.edu/ier
More information through EDIRC
|Order Information:|| Web: http://www.blackwellpublishing.com/subs.asp?ref=0020-6598 Email: |
When requesting a correction, please mention this item's handle: RePEc:ier:iecrev:v:48:y:2007:i:3:p:953-994. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or ()
If references are entirely missing, you can add them using this form.