IDEAS home Printed from https://ideas.repec.org/a/spr/jogath/v27y1998i3p427-441.html
   My bibliography  Save this article

Home-grown values and incentive compatible auction design

Author

Listed:
  • E. Elisabet RutstrÃm

    (Department of Economics, College of Business Administration, University of South Carolina, Columbia, SC 29208, USA)

Abstract

The behavioral properties of several auctions designed to elicit individual valuations for an object are studied using controlled laboratory experiments. Our experiments lead us to conclude that there are some behavioral differences between alternative incentive-compatible institutions for eliciting home-grown values, contrary to the theoretical expectation that these institutions are isomorphic. These results are consistent with earlier experimental results using induced values. The most important finding is that English auctions appear to elicit lower bids than Vickrey auctions, after controlling for observable socio-economic characteristics. Moreover, English auction bids also exhibit significantly less residual variance and may be sensitive to the number of rival bidders. It appears that the real-time learning allowed in the English auction significantly affects subject behavior. We also find that values elicited with the Becker, DeGroot and Marshak institution differ from those in both English and Vickrey auctions.

Suggested Citation

  • E. Elisabet RutstrÃm, 1998. "Home-grown values and incentive compatible auction design," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(3), pages 427-441.
    • Handle: RePEc:spr:jogath:v:27:y:1998:i:3:p:427-441
    Note: Received November 1993/Final version May 1995
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/00182/papers/8027003/80270427.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jogath:v:27:y:1998:i:3:p:427-441. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.