IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Late Bidding in Open Auctions with Two Bidders

Listed author(s):
  • Colin Campbell

    ()

    (Rutgers University)

  • Ying Zhang

    ()

    (Rutgers University)

Registered author(s):

    In open internet auctions with deadlines, some bids made near the deadline are randomly lost. Roth and coauthors have demonstrated via full-information examples that multiple bidders bidding late can nevertheless be equilibrium behavior, as the cost to one bidder of a lost bid can be outweighed by the gain when others’ bids are lost. We extend to a standard symmetric two-bidder environment with continuously distributed random private values. For strategies in which every type of bidder either bids immediately, or waits to bid late when the other bidder has done so, all equilibria are symmetric. In any equilibrium in which some types bid late, those that bid late are an interval that includes the lowest type. Equilibria in which at least some types bid late exist when the probability of a lost bid is small, and when buyer values are probabilistically high.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Paper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 201324.

    as
    in new window

    Length: 20 pages
    Date of creation: 14 Aug 2013
    Handle: RePEc:rut:rutres:201324
    Contact details of provider: Postal:
    New Jersey Hall - 75 Hamilton Street, New Brunswick, NJ 08901-1248

    Phone: (732) 932-7363
    Fax: (732) 932-7416
    Web page: http://economics.rutgers.edu/

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:rut:rutres:201324. 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: ()

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.