Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study

John Kagel, Ronald Harstad and Dan Levin ()

Econometrica, 1987, vol. 55, issue 6, 1275-1304

Abstract: In affiliated private value auctions, each bidder has perfect information regarding own value for the object at auction, but higher values of the item for one bid der make higher values for rivals more likely. The authors report on a series of experiments examining the following predictions: (1) in a first-price auction, public information about rivals valuations incr eases expected revenue, (2) an English auction institution increases expected revenue, (2) an English auction institution increases expect ed revenue compared to a first-price auction, and (3) a second-price auction is isomorphic to an English auction institution. Predictive a dequacy of several ad hoc bidding models are compared with Nash equil ibrium predictions. Copyright 1987 by The Econometric Society.

Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (374)

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819871 ... O%3B2-5&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:ecm:emetrp:v:55:y:1987:i:6:p:1275-1304

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().