Just a small delay? Bidding Behavior and Efficiency in overlapping multiple auctions

Tim Hoppe ()
Additional contact information
Tim Hoppe: Faculty of Economics and Management, Otto-von-Guericke University Magdeburg

No 8032, FEMM Working Papers from Otto-von-Guericke University Magdeburg, Faculty of Economics and Management

Abstract: Online auction platforms like eBay provide a wide range of auctions containing substitutable goods. Some of these auctions exhibit parallel elements which means that two or more auctions run side by side for a certain time. Experiments have shown that multiple auctions ending at the same time, result in significantly lower efficiency due to the coordination failure of the buyers. I introduce an experimental setup with three sellers and four buyers in an overlapping multiple second price auction environment, where every seller runs one auction with a homogeneous good and the buyers are confronted with single unit demand. Furthermore, I vary the degree of the overlap between the successive auctions. One main result is that sellers revenue is significantly higher in overlapping multiple auctions than in parallel multiple auctions. Moreover, I observe a lower coordination failure of the buyers in overlapping auctions than in parallel multiple auctions. Due to these results, efficiency in overlapping multiple auctions is higher compared to the efficiency in parallel multiple auctions.

Keywords: internet auctions; cross bidding; market design; electronic business (search for similar items in EconPapers)
JEL-codes: C92 D44 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2008-12
New Economics Papers: this item is included in nep-exp
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2008_Dateien/2008_32.pdf First version, 2008 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.ww.uni-magdeburg.de:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mag:wpaper:08032

Access Statistics for this paper

More papers in FEMM Working Papers from Otto-von-Guericke University Magdeburg, Faculty of Economics and Management Contact information at EDIRC.
Bibliographic data for series maintained by Guido Henkel ().