Multi-Unit Auctions and Competition Stricture
Is it better for a seller who wants to auction multiple units to face many small bidders or few large bidders? Since multi-unit auction models usually have many equilibria, there are no theoretical predictions on the impact of the competition structure on the performance of a multi-unit auction (in terms of expected revenue and allocation efficiency). Our experimental results with uniform-price auctions support that with a constant competition degree (identical aggregate demand and supply), when the number of bidders increases while individual demand decreases, there is less strategic bidding (demand reduction). It leads to higher expected revenue with a lower variance but allocation efficiency is not significantly different.
|Date of creation:||Dec 2009|
|Date of revision:||Dec 2009|
|Contact details of provider:|| Postal: |
Web page: http://www.lameta.univ-montp1.fr/
More information through EDIRC
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.:
- David Porter & Roumen Vragov, 2006. "An experimental examination of demand reduction in multi-unit versions of the Uniform-price, Vickrey, and English auctions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(6), pages 445-458.
- Richard Engelbrecht-Wiggans & John A. List & David H. Reiley, 2006.
"Demand Reduction In Multi-Unit Auctions With Varying Numbers Of Bidders: Theory And Evidence From A Field Experiment ,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(1), pages 203-231, 02.
- David Reiley & John List & Richard Engelbrecht-Wiggans, 2004. "Demand reduction in a multi-unit auctions with varying numbers of bidders: Theory and evidence from a field experiment," Framed Field Experiments 00147, The Field Experiments Website.
- Chakraborty, Indranil, 2006. "Bundle and separate sales in auctions with entry," Games and Economic Behavior, Elsevier, vol. 54(1), pages 31-46, January.
- Lawrence M. Ausubel & Peter Cramton, 1995. "Demand Reduction and Inefficiency in Multi-Unit Auctions," Papers of Peter Cramton 98wpdr, University of Maryland, Department of Economics - Peter Cramton, revised 22 Jul 2002.
- Glenn W. Harrison & John A. List, 2004.
Journal of Economic Literature,
American Economic Association, vol. 42(4), pages 1009-1055, December.
- Chan, Chris & Laplagne, Patrick & Appels, David, 2003.
"The Role of Auctions in Allocating Public Resources,"
Staff Research Papers
31916, Productivity Commission.
- Chris Chan & Patrick Laplagne & David Appels, 2003. "The Role of Auctions in Allocating Public Resources," Microeconomics 0304007, EconWPA.
- Sophie Thoyer & Atakelty Hailu, 2005.
"Multi-Unit Auctions to Allocate Water Scarcity Simulating bidding behaviour with agent based models,"
05-01, LAMETA, Universtiy of Montpellier, revised Jan 2005.
- Atakelty Hailu & Sophie Thoyer, 2005. "Multi-Unit Auctions to Allocate Water Scarcity Simulating Bidding Behaviour with Agent Based Models," Others 0512012, EconWPA.
- Richard Engelbrecht-Wiggans & Charles M. Kahn, 1998. "Multi-unit auctions with uniform prices," Economic Theory, Springer, vol. 12(2), pages 227-258.
- repec:ner:tilbur:urn:nbn:nl:ui:12-381122 is not listed on IDEAS
- Wilson, Robert, 1979. "Auctions of Shares," The Quarterly Journal of Economics, MIT Press, vol. 93(4), pages 675-89, November.
- Noussair, Charles, 1995. "Equilibria in a Multi-object Uniform Price Sealed Bid Auction with Multi-unit Demands," Economic Theory, Springer, vol. 5(2), pages 337-51, March.
When requesting a correction, please mention this item's handle: RePEc:lam:wpaper:09-18. 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: (Patricia Modat)
If references are entirely missing, you can add them using this form.