Repeated Rounds with Price Feedback in Experimental Auction Valuation: An Adversarial Collaboration
Jay Corrigan (),
Andreas Drichoutis,
Jayson Lusk,
Rodolfo Nayga and
Matthew Rousu
American Journal of Agricultural Economics, 2012, vol. 94, issue 1, 97-115
Abstract:
It is generally thought that market outcomes are improved with the provision of market information. As a result, the use of repeated rounds with price feedback has become standard practice in the applied experimental auction valuation literature. We conducted two experiments to determine how rationally subjects behave with and without price feedback in a second-price auction. Results from an auction for lotteries show that subjects exposed to price feedback are significantly more likely to commit preference reversals. However, this irrationality diminishes in later rounds. Results from an induced value auction indicate that price feedback caused greater deviations from the Nash equilibrium bidding strategy. Our results suggest that while bidding on the same item repeatedly improves auction outcomes (i.e., reduced preference reversals or bids closer to induced values), this improvement is not the result of price feedback. Copyright 2012, Oxford University Press.
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (24)
Downloads: (external link)
http://hdl.handle.net/10.1093/ajae/aar066 (application/pdf)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Repeated Rounds with Price Feedback in Experimental Auction Valuation: An Adversarial Collaboration (2011) 
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:oup:ajagec:v:94:y:2012:i:1:p:97-115
Access Statistics for this article
American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu
More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().