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Bidder Preferences Among Auction Institutions

Author

Listed:
  • Radosveta Ivanova-Stenzel

    (Humboldt University of Berlin)

  • Timothy C. Salmon

    (Florida State University)

Abstract

This study examines bidder preferences between alternative auction institutions. We seek to experimentally characterize the degree to which bidders prefer an ascending auction to a sealed bid auction. We find very strong ceteris paribus preferences for the ascending institution with bidders choosing it overwhelmingly often when entry prices for the two auctions are the same. When the entry prices of the two auctions differ, many subjects can be shown to be willing to pay more to enter the ascending auction than is explainable by their risk attitudes when accounting for their expectations about the risk preferences of their opponents.

Suggested Citation

  • Radosveta Ivanova-Stenzel & Timothy C. Salmon, 2004. "Bidder Preferences Among Auction Institutions," Experimental 0404005, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpex:0404005
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    References listed on IDEAS

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    More about this item

    Keywords

    auctions; mechanism design; electronic markets;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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