Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study
This paper considers the sealed bid and ascending auction, which both identifies the minimum Walrasian equilibrium prices and where truthful preference revelation constitutes an equilibrium. Even though these auction formats share many theoretical properties, there are behavioral aspects that are not easily captured. To explore this issue in more detail, this paper experimentally investigates what role the design of the auction format has for its outcome. The results suggest that the sealed bid mechanism performs weakly better in all of investigated measures (consistent reporting, efficiency etc.). In addition, we find that the performance of the ascending auction is increasing over time, whereas the sealed bid auction shows no such tendency.
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| Length: | 10 pages |
| Date of creation: | 17 Dec 2010 |
| Date of revision: | |
| Publication status: | Published as Andersson, Tommy, Christer Andersson and Ola Andersson, 'Sealed Bid Auctions vs. Ascending Bid Auctions: An Experimental Study' in Review of Economic Design, 2013, pages 1-16. |
| Handle: | RePEc:hhs:lunewp:2010_017 |
| Contact details of provider: | Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden Phone: +46 +46 222 0000 Fax: +46 +46 2224613 Web page: http://www.nek.lu.se/en More information through EDIRC
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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