Bidder Behavior in Multi-Unit Ascending Auctions : Evidence from Cross-Border Capacity Auctions
We analyse a unique data set on multi-unit ascending auctions,which contains the whole dynamic of bidders' behavior in the IFAauctionsselling the right to use the electric transmission capacity betweenFrance and England. First, we document that daily auctions suffer from a great extent of underpricing and that the winning priceand the award concentration are varying a lot across time periods.Second, we fail to explain this evidence by winner's curse-driven arguments.The time periods, which are proxying for small changes inthe bidding rules, seem to play a significant role in the extent of underpricing.Our empirical findings are consistent with the view thatdaily multi-unit ascending auctions among a small number of potentialbidders allow a large panel of outcomes, in particular very collusiveones.
|Date of creation:||2007|
|Contact details of provider:|| Postal: Bâtiment ENSAE, 5 rue Henry LE Chatelier, 91120 Palaiseau|
Phone: 01 41 17 60 81
Web page: http://crest.science
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:crs:wpaper:2007-27. 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: (Sri Srikandan)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.