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Charity auctions: a field experiment

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  • Jeffrey Carpenter
  • Jessica Holmes
  • Peter Hans Matthews

Abstract

Auctions are a popular way to raise money for charities, but relatively little is known, either theoretically or empirically, about the properties of charity auctions. We conduct field experiments to see which sealed bid format, first price, second price or all‐pay, raises the most money. Our experiment suggests that both the all‐pay and second price formats are dominated by the first price auction. Our design also allows us to identify differential participation as the source of the difference between existing theory and the field.

Suggested Citation

  • Jeffrey Carpenter & Jessica Holmes & Peter Hans Matthews, 2008. "Charity auctions: a field experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 92-113, January.
    • Handle: RePEc:wly:econjl:v:118:y:2008:i:525:p:92-113
    DOI: 10.1111/j.1468-0297.2007.02105.x
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    References listed on IDEAS

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    1. Isaac, R. Mark & Salmon, Timothy C. & Zillante, Arthur, 2007. "A theory of jump bidding in ascending auctions," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 144-164, January.
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